Dollars and sense: negotiating compensation packages.

Securing highly skilled financial employees is no simple task, particularly in today's increasingly competitive hiring environment where many professionals receive multiple employment offers. Identifying top accounting talent alone can be challenging, but formalizing the offer once you have made a final selection in part requires knowing how to manage compensation discussions effectively.

Many job seekers today are skilled negotiators and will enter the meeting knowledgeable on the topic. As the hiring authority, you will need to be equally prepared.

Define Your Salary Range

My last column (April/May NPA) talked about ways to develop attractive compensation and benefits plans. Many of those tips apply to salary negotiation as well.

Always enter discussions with a clear idea of current pay trends in accounting. Since the best applicants are always in demand, it is wise to pay above the going market rate to help distinguish yourself from your competitors.

How do you determine what to offer? Trade association reports, government data and resources such as our company's 2005 Salary Guide can give you an idea of prevailing salary levels for a variety of positions. (For a free copy of the guide, please call 800-474-4253 or visit www.roberthalf.com.) Information that breaks down average base compensation by public accounting firm size is also available. In addition, many employers publish their pay rates in their help-wanted ads.

Ideally, you should establish a salary range for the position before you begin recruiting. This will help you stay within your budget should you need to negotiate.

Extend the Offer in Person

Schedule a face-to-face meeting to present the offer. This allows you to give a thorough overview of the compensation package, including specific details about the salary and benefits. It also provides an opportunity for the candidate to ask pertinent questions. Augment the discussion about the financial aspects of the offer by highlighting positives such as a supportive work environment and career-advancement opportunities.

Think Creatively

If you are unable to match an accounting candidate's salary request, consider expanding other components of the package. Applicants are often willing to compromise on base compensation if the employer makes concessions in other areas.

Flexible scheduling is one appealing option that represents little cost to a firm. In fact, chief financial officers polled in a recent survey by our company said this was the employee benefit personnel value most. Other ways to improve the offer might include providing additional time off or opportunities to telecommute.

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Know When to Draw the Line

Be careful not to go too far to secure a candidate. It is easy to get so caught up in negotiations that you lose sight of what is appropriate for your organization. No matter how much someone seems perfect for the job, in certain instances it may be best to end negotiations.

If an individual is reluctant to accept your offer, try to identify the source of the problem and make reasonable accommodations. However, avoid going beyond the firm's pay scale. You risk damaging morale among existing staff should they learn that a new hire in the same role is being paid at a significantly higher rate.

Finalize the Details

After you have completed the evaluation process, provide the accounting professional with an offer letter that details the position title, key responsibilities, compensation and any negotiated items, such as vacation time. Once the person has officially accepted the deal, provide employment forms and additional information about your firm. Maintain contact in the coming weeks so the individual feels welcome and eager to join your organization.

Sufficient preparation and the right mindset will help make the negotiation process a productive one for both parties. Know your limits in advance and be open to making reasonable adjustments to the offer in order to finalize the agreement. You'll set the stage for successful negotiations and a positive working relationship with your new hire.

Max Messmer is chairman and CEO of Robert Half International Inc. (RHI), parent company of Robert Half[R] Finance & Accounting, Accountemps[R] and Robert Half[R] Management Resources. RHI is the world's first and largest specialized staffing firm placing accounting and finance professionals on a full-time, temporary and project basis. Mr. Messmer's most recent books are Motivating Employees For Dummies[R] and Managing Your Career For Dummies[R] (John Wiley & Sons, Inc.).