How Do You Communicate A Labor Budget To Someone When Negotiating a Rate?

Question

I'm onboarding a few different admin positions and I'm trying to do it the right way. This means coming up with a budget that works, then making the new position's pay based off of that with performance pay to help increase their pay with company performance. The issue I'm running in to is of course everyone wants more money. Me too lol

But I struggle a little telling them why this is why I am paying what I am. As a side note, I'm also struggling a little bit communicating why it needs to be performance based.

How do you guys communicate that to your team? What do you do when they want more, are a home run hire, but you don't have the budget for it?

michael090 · Answer

Here’s a tighter, more natural version:“I keep it simpleI tell them the base has to stay within what the business can sustain, not just what we’d&nbsp;like to pay.For performance pay, I position it as upside: instead of being capped, they can earn more as results come in.If someone wants more and I can’t meet it, I’m upfront about it and show them what growth would need to happen to increase their pay. If that doesn’t work for them, they’re probably not the right fit right now.

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How Do You Communicate A Labor Budget To Someone When Negotiating a Rate?

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