Earlier, we've been on a talent hunting journey. We planned our workforce sourced the candidates selected the best and interviewed our finalists.
Finally, the moment has
arrived. You and the panel are all in agreement. You’ve found your perfect
candidate.
So we’re done right? We
just send an email and they start?
As a HR professional,
your job is to be the professional calm and prepared guide who brings the
candidate over the finish line.
Why This Stage is So Delicate
Think about it from the
candidate's perspective. They are nervous excited and about to make a huge life
decision.
Think about it from the
company's perspective. The manager needs this person to start. The
company has a strict budget.
This is the one moment
where the relationship changes. You are no longer "evaluators" and
they are no longer an "applicant." You are about to become
"partners" and "colleagues." A bad experience here for
example a lowball offer or a defensive tone can make a star candidate feel
disrespected and walk away from a job they were excited about.
Your goal isn't just to
"get them to sign." It's to make them feel welcomed valued and
excited to begin.
Before You Pick Up the Phone (The 3P's)
You never make an
offer on the spot. A professional offer is built on preparation. Just remember
the 3 P's: Package Pitch and Permission.
1. Prepare the Package
You can't just offer a
random number. You must know exactly what you can offer and why.
- Know Your Salary Band: Every role in your company should have a
"salary band" (a minimum a midpoint and a maximum). Your job is
to know this band.
- See the "Total Compensation": This is your secret weapon. The offer is not
just the monthly salary. It's the entire package. You must have a
list of all the other valuable things you offer:
- Benefits: Health insurance Provident Fund (PF) and life
insurance.
- Perks: Work from home policy flexible hours and free
lunch.
- Bonus: Is there an annual performance bonus?
- Leave: How many paid vacation days do they get? When you
put it all together the "Total Compensation" is often much more
impressive than just the salary.
2. Prepare the Pitch
You need to plan the
conversation. This isn't a casual chat it's a happy but formal business
discussion. Know what you're going to say.
3. Get the Permission (Approvals)
This is the golden rule. Never
make an offer verbal or written until it has been 100% approved by the approval
authorities including requirement head and finance department. If you offer a
number and your boss says "no" later you've just broken trust and
will likely lose the candidate.
How the Offer Process Changes By Organization
This is a critical point.
The "art of negotiation" is not the same everywhere. The amount of
flexibility you have is 100% dependent on your organization's structure and
rules.
For example in a startup
the priority is speed and talent. The process is highly flexible and
negotiation is rapid and expected. A founder might decide on a salary with you
in ten minutes because they are hiring the person not just filling a slot.
In a large private sector corporation the priority is a balance of
competitiveness and structure. They have salary bands but they also have
flexibility. They expect to negotiate with star candidates and often have a
budget for a 10% or 15% increase.
The process is completely
different in a regulated organization like a cooperative public sector entity
or government department. Here the priority is fairness compliance and budget
control. The process is rigid and non-negotiable for very good reasons. The
salary is not a suggestion it's fixed by an approved pay scale or grade so
there is no room to negotiate the base pay. The budget for the role was
approved months in advance and you cannot 'find' more money. You must strictly
adhere to approval proceedings for each stage and cannot even make a verbal
offer until all approvals are signed. The selection committee's
recommendation must be formally approved by management or the board. In this
environment your job is not to 'negotiate'. Your job is to clearly and
confidently present the fixed offer and explain why it is a great
package. You sell the total compensation: the job security the benefits the
work life balance and the value of the organization.
Making the Verbal Offer (The Phone Call)
Always always always make the first offer with a phone call.
An email is cold and
impersonal. A phone call is respectful and human. It's a celebration!
- The Vibe: Sound excited! You are excited. You found
your person.
- The Script:
- Start with the good news: "Hi Priya I'm calling with some
wonderful news. The entire interview panel was so impressed with you and
we would like to formally offer you the position of 'Senior Marketing
Analyst'!"
- STOP. Be quiet. Let them react. Let them be happy and say
"Thank you!"
- Lay out the key components: "We're prepared to offer a starting
salary of [Amount] along with our full benefits package which includes
[mention 1-2 key benefits like health insurance] and [X] days of paid
leave. We were hoping you could join us on [Proposed Start Date]."
- The Magic Phrase: "We will be sending all of this in a
formal offer letter via email but I wanted to discuss it with you first. How
does that sound to you?"
This open-ended question
is what officially starts the negotiation. Now one of three things will happen.
Handling the "N" Word: Negotiation
The most important lesson
for a HR professional: Negotiation is NOT a fight. (Unless your policy
forbids it!)
It is a normal
professional conversation to find a win win solution. Do not get defensive. Do
not take it personally. Your job is to be the calm helpful and logical
mediator.
Scenario 1: They Say "YES!" Immediately
- What to do: Congratulations! Reconfirm the salary and start
date. Tell them "That's fantastic news. I am sending the official
offer letter to your email right now. Please look it over and let me know
if you have any questions. We'd need you to sign and return it by
[Date]."
Scenario 2: They Say "Can I think about it?"
- What to do: This is 100% normal. They need to talk to their
family or review their finances.
- What to say: "Of course. This is a big decision and we want
you to be 100% comfortable. Can we agree on a time to reconnect? I can
give you a call in 48 hours perhaps on Wednesday morning?"
- Why this works: It shows respect but also keeps the process
moving. It sets a clear deadline.
Scenario 3: They Ask for More Money (e.g. "That's a great offer but I
was hoping for something closer to X.")
- What to do: Stay calm. Do not say "No" (even if the
answer is no). Do not say "I can't."
- What to say (For Regulated Orgs): "I understand. As we discussed our roles
are tied to a specific pay structure so the base salary is fixed for this
position. However I do want to re-emphasize the total value of the package
which includes..."
- What to say (For Flexible Orgs): "Thank you for sharing that. Can you
help me understand a bit more about how you got to that number? ... I
can't make any promises on this call but let me take this back to the
hiring manager. I will get back to you by [Date]."
- Why this works: You made them feel heard. You set clear
expectations.
What If You Can't Budge on Salary?
Sometimes the budget is
the budget. This is where a good HR pro shines.
Remember the Total
Compensation? Now is the time to use it.
You call them back and
say: "Hi Priya I've spoken with the team. While the base salary for this
position is fixed at [Amount] due to our internal pay bands I did want to
highlight a few other things.
Our benefits package is
valued at an additional [Amount] per year. We also have a performance bonus of
up to [X%]."
Other things you can
sometimes negotiate (even in strict orgs):
- A different start date.
- (In flexible orgs) A onetime signing bonus.
- (In flexible orgs) A guaranteed 6-month
review for a salary increase.
This shows you're trying
to find a solution even if you can't meet their main request.
The Formal Offer Letter (The Final Step)
Once you have a verbal
"Yes!" on all the key terms (salary start date) you must send the
formal written offer letter immediately.
This is a legal
document. It must be 100% accurate. Double check everything.
Key items it must
include:
- Job Title & Department
- Joining Date
- Salary (broken down into base PF etc.)
- Reporting Manager
- Key Benefits (Health Insurance Leave)
- An Expiry Date (e.g. "This offer is valid
until [Date].")
Final Thoughts...
This final stage sets the
tone for the new employee's entire experience with your company. By being
prepared professional and positive you're not just "filling a job."
You're starting a new professional relationship on a foundation of respect.
Did you find this guide
helpful? We'd love to hear your
perspective. What's the best (or worst) negotiation experience you've ever had?
Share your story in the comment box below!
By Mit I HR Professional
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