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Chapter 22. Making the Hiring Decision > Making a Job Offer - Pg. 297

Making the Hiring Decision 297 Obtain a general idea of each prospect's salary demands early in this process so that you don't waste time in even considering people whose salary requirements are way out of line. In negotiating salary, keep in mind what you pay currently employed people for doing similar work. Offering a new person considerably more than that amount can cause serious morale problems. There are exceptions to this rule, of course. Some applicants have capabilities that you believe would be of great value to your company, and to attract these people, you may have to pay con- siderably more than your current top rate. Some companies create special job categories to ac- commodate this situation. Others pay only what they must and hope that it won't lead to lower morale. The total compensation package includes vacations, benefits, frequency of salary reviews, and incentive programs. All these items should be clearly explained. FYI Companies traditionally have used an applicant's salary history as the basis for their offer. Ten percent or 15 percent higher than a person's current salary is considered a reasonable offer. Because women usually have been paid less than men, however, basing the salary you offer on current earnings isn't always equitable. If the job had been offered to a man and you would have paid a higher rate based on his salary history, you