What Should An HR Know About Salary Negotiations?


Salary negotiation is a process between an employee and their employer to determine the best compensation agreement. This involves discussing expectations, considering different factors, and making compromises. The best way for an HR professional to handle this critical part of the hiring process is by showing that they have done their homework, are prepared for negotiations, and know how much room there is for movement in terms of budgeting.

Working as HR Executive

HR jobs in singapore require you to be skilled at managing people, processes, and projects. It is essential for HR executives to know how to negotiate salary and benefits, as it helps them to manage employee expectations.

When negotiating salary, an HR executive should have a firm grasp of the company’s budget and their own value in the marketplace. They should also be able to demonstrate their understanding of the business needs and how they can meet those needs through their work.

Know how to prepare for a salary negotiation.

Once you’ve found the right candidate for a job, you should be ready to negotiate salary. But before you start, some prerequisites need to be considered:

  • Know how much your organisation can afford.
  • Know what other companies in the market are paying.
  • Know how well qualified this employee is and what they have done in the past.
  • If you know these things, then it might be easier for you as an HR manager to prepare for a salary negotiation with them – which obviously will not end well for both sides!

Understand the company’s budget and compensation structure

Your company’s compensation structure is crucial information you need to understand before beginning salary negotiations. The budget and the compensation structure define how much your company can pay you, which determines what kind of value you add to them.

As an HR professional, it is imperative that you know the answer to these questions:

  • How much does my organisation spend on employee benefits?
  • How does our pay structure work? What factors determine my employee’s compensation package?
  • What is the range for job openings similar to mine in our industry/locations?

Be familiar with industry standards

When it comes to salary negotiations, there are a few things that HR professionals need to keep in mind. First, be familiar with industry standards. This is important because you’ll want to know the going rate for the position you’re hiring for, as well as how much other companies are paying people in that role. 

Second, ensure you know what kind of benefits and perks your company offers—this will help you negotiate with candidates on more than just money alone. Finally, since you’re working as an HR professional, it’s essential that you understand how these negotiations fit within your organisation’s culture and values.

Understand the employee’s qualifications and experience

It is essential to understand what the employee brings to the table. This includes understanding their qualifications, experience, and other factors such as their position, industry, and geography.

You need to know what you are willing to pay a candidate for to fulfil your role requirements and expectations. You also want them at your company for a long time, so it’s essential that your offer aligns with their motivations, aspirations, and personal goals.

Communicate clearly

The key to winning a salary negotiation is communicating clearly and concisely. An excellent place to start is by clearly communicating the company’s compensation structure, including information on salary ranges and pay raises. This will help employees understand and accept your offer. You can also use this time to explain any rules or regulations that affect their pay, such as pension plans, stock options, or profit-sharing schemes.

It’s also vital that you avoid using jargon or acronyms in your communication with employees; these can confuse them and make it harder for them to accept your offer.

If either party becomes frustrated during negotiations, it can be helpful if both parties take a break before continuing with discussions again after cooling down (but ensure they still have access to any pertinent documents). That said – if things continue getting heated up too fast without being ableist cooled down first, then consider taking another approach altogether.

Be prepared to negotiate

You must be prepared to negotiate. Negotiating is not just asking for more money or title; you must also know your worth and what you want and be prepared to walk away if the offer is inadequate.

Negotiating means asking for more money without being afraid of losing the job opportunity. The employer may even offer you less than you expect but never feel pressured into taking less than what is fair for you.

Everyone negotiates differently, so it’s important that each person takes time to figure out their style when dealing salary offers from employers because it will help them prepare mentally before they sit down with their potential employers on interview day or throughout any other time during negotiations

Be aware of any laws and regulations

Ensure that all offers are in compliance with the law. While negotiating salary is usually a private conversation between you and your employee, there are some basic laws to be aware of. For example, many countries regulate what can and cannot be discussed during negotiations. In the United States, employers may not refer to an individual’s age or any other protected characteristics (such as race) when offering a salary or compensation package. If you have questions about how much you can say in negotiations, talk with your legal counsel or HR department before making any offers.

Consider other forms of compensation

HR professionals should also consider offering other forms of compensation. These may include:

  • Stock options, bonuses, benefits such as health insurance, flexible work schedules, working from home, and paid time off (including vacation).
  • Life insurance policies for employees who travel overseas or have high-risk jobs.

Some businesses may offer employee benefits that are not required by law but that many employees find valuable. These can include Retirement plans such as 401(k)s and other types of pension plans. Health care insurance coverage that provides access to doctors and hospitals outside your network. Life insurance policies for employees who travel overseas or have high-risk jobs.

Be transparent

While negotiating a salary, you will be asked to give reasons behind the offer by your interviewer. Your response should be clear, honest, and open.

It’s okay to ask for more than what you think is realistically possible to understand better where the offer stands. You may even be able to negotiate for other benefits such as flexible working hours or a higher bonus package!

Once you’ve agreed on a salary, write it down in an email or on paper. You don’t want any confusion about what was offered and accepted.

Be sensitive

  • Be sensitive to the employee’s needs.
  • Be sensitive to the needs of the other party.
  • Try to come to a mutually beneficial agreement.
  • Be aware of the other party’s feelings, and avoid offending or insulting them. (This applies especially when negotiating with someone higher than you on an organisation chart.)
  • Be polite and respectful during your negotiations; remember that they can make or break your career in this company if they don’t like how their negotiations went!


This article has given you a good overview of what an HR should know about salary negotiation. We’ve covered a lot of ground here, but it’s important to remember that no two situations are alike. And if you still have questions or need more advice after reading these tips, don’t hesitate to reach out!