< Back to FAQs

Q: How can I prepare to negotiate salary with a prospective employee?

A. First, determine what your compensation strategy is. Do you want to offer the highest salaries in town? Or are your target employees attracted to other things besides salary, perhaps discounts on company merchandise, or the “fun factor” of the job? You may decide that you can offer slightly less in salary than your competitors because your company has been named “The Best Place to Work” for 4 years in a row. Whatever your situation, you should be aware of your position before looking at salary data.

Second, review salary surveys. These surveys come in all shapes and sizes and at all different prices. Reliable salary surveys can cost thousands of dollars. Beware of free salary data websites found online. These websites invite the public to enter their personal salary data with no means of verification and do not take factors like job responsibilities and geographic areas into consideration. One reliable free resource for salary data can be found on the Department of Labor’s website.

And finally, offer a salary that should please both you and the candidate and negotiate from there. With the preparation you’ve done beforehand, you’ll know your parameters and feel confident that your offer is a fair one. Subscribe to IES’s monthly newsletter for more information on best practices in HR.

Our Mission

The mission of IES is to be a resource to our clients and employees, treating both with respect, and to ensure they are confident in our ability to provide accurate and timely payroll, invoicing, and benefits administration as the employer of record.

Sara Jensen