Notices

Salary Negotiations from the Employer’s Perspective (SMEs and Startups): How to Address Differences Between Job Applicants’ Salary Expectations and the Company’s Salary Budget.

Job applicants generally expect to receive a salary equal to or higher than what they earned in their previous positions. However, small and medium-sized enterprises (SMEs) and startups may find it difficult to meet applicants’ salary expectations due to financial constraints or limited personnel budgets. In such situations, companies need to explore various salary negotiation strategies to attract and recruit talented employees.

When a company cannot offer a salary that meets an applicant’s expectations, it may propose alternative compensation arrangements, such as signing bonuses, performance-based bonuses, stock options, or equity compensation. In particular, by offering long-term incentive plans linked to company performance, employers can bridge the gap between the applicant’s expected salary and the initial salary offered. Such arrangements may encourage applicants to accept employment with the expectation of receiving greater financial rewards as the company grows.