Offer Approval & Negotiation SOP

1. Purpose

The purpose of this SOP is to establish a standardized, transparent, and compliant process for approving employment offers and conducting salary negotiations.

This ensures:

• All offers align with the Headcount Plan Sheet (Stage 1) and Compensation & Benefits Policy (Stage 1).
• Negotiations remain consistent with the company’s EVP pillars (Growth, Impact, Culture, Rewards, Balance).
• Hiring managers, HR, and leadership follow clear approval protocols to avoid delays, budget deviations, or bias.
• Candidate experience during the offer stage reflects professionalism and reinforces employer branding.

Outcome Expected:

• Offers are made only after proper validation and approvals.
• Compensation discussions are fair, competitive, and aligned with internal equity.
• Candidate acceptance rates improve while minimizing renegotiation risks.

2. Scope

This SOP applies to all employment offers made by the organization across full-time, part-time, contractual, and internship positions within the IT services and SaaS divisions.

It covers the following areas:

1. Offer Approval
   • Verification of role against the Headcount Plan Sheet (Stage 1).
   • Alignment with approved salary bands and benefits outlined in the Compensation & Benefits Policy (Stage 1).
   • Internal approval workflow for draft offers.
2. Offer Negotiation
   • Guidelines for conducting fair, transparent, and consistent negotiations.
   • Escalation matrix for exceptions beyond approved compensation bands.
   • Candidate communication protocols.
3. Exclusions
   • Vendor/outsourced staff contracts (covered under separate Vendor & Contractor Policy).
   • Leadership/executive hires (CEO/Board-driven approval process, outside this SOP but may reference compensation benchmarks).

3. Roles & Responsibilities

4. Offer Approval Workflow

The approval workflow ensures that every employment offer is validated against organizational plans, budget, and compliance requirements before being shared with the candidate.

4.1 Workflow Steps

4.2 Approval Timelines

• Standard Offers: Approvals must be completed within 3 business days.
• Exceptional Offers (above band or with added benefits): Approvals must be escalated and resolved within 5 business days.

4.3 Escalation Path

• If delays occur, HR escalates first to the Department Head, then to CHRO.
• Any unresolved approval beyond 7 days is flagged in the weekly HR compliance report.

Outcome Expected:

• All offers are systematically validated and approved.
• Approvals follow a transparent trail, minimizing risk of unauthorized commitments.
• Offer release timelines remain consistent, improving candidate experience.

5. Offer Negotiation Guidelines

Offer negotiations must balance candidate expectations, internal equity, and budgetary constraints. All discussions must be handled with transparency, fairness, and professionalism to protect both the company’s reputation and the candidate experience.

5.1 Principles of Negotiation

• Fairness & Equity: Offers should remain within the approved salary bands and be aligned with internal peers in similar roles.
• EVP Alignment: Negotiations should emphasize not just compensation, but the company’s EVP pillars: Growth, Impact, Culture, Rewards, Balance.
• Transparency: Communicate what is negotiable (e.g., joining bonus, flexible benefits) and what is fixed (e.g., statutory benefits).
• Candidate-Centric: Ensure discussions are respectful, timely, and consistent with employer branding.

5.2 Negotiable Elements

5.3 Non-Negotiable Elements

• Statutory benefits (PF, gratuity, insurance, leave entitlements).
• Company-wide policies (notice period, standard working hours).
• Salary above approved compensation band (requires exception approval).

5.4 Communication Guidelines

• HR leads all candidate communication, with Hiring Manager looped in only when role-specific discussions are needed.
• Negotiations should be concluded within 5 business days of the initial offer.
• All revised offers must be documented and approved again via the Offer Approval Workflow (Section 4).

5.5 Escalation in Case of Deadlock

• If candidate expectations exceed approved thresholds, HR escalates to Department Head.
• Final authority rests with the CEO/CHRO in case of high-value or strategic hires.

Outcome Expected:

• Negotiations remain structured, equitable, and aligned with organizational policies.
• Candidate experience is positive, even if negotiations do not result in an accepted offer.

6. Documentation & Record-Keeping

Proper documentation ensures that every step of the offer and negotiation process is traceable, compliant, and auditable. All records must be stored securely in the company’s HRIS/ATS and remain accessible only to authorized personnel.

6.1 Documents to be Maintained

6.2 Access & Confidentiality

• Access to offer-related documents is restricted to HR, Finance, and Leadership.
• Hiring Managers may view approved final offers for their department but not negotiation history.
• Candidate personal data must comply with data privacy regulations (GDPR, local employment laws).

6.3 Audit & Monitoring

• HR must conduct quarterly audits of offer records to verify compliance with approval workflows.
• Any deviations must be reported in the HR Compliance Report.

Outcome Expected:

• Every offer and negotiation is backed by documented evidence.
• Compliance, fairness, and data privacy are safeguarded.
• Historical records support audits, legal defense, and workforce planning analysis.

7. Compliance & Governance

This section ensures that the offer approval and negotiation process operates within legal, ethical, and organizational boundaries.

7.1 Legal & Regulatory Compliance

• All offers must comply with applicable labor laws, tax regulations, and employment standards in the country of employment.
• Mandatory inclusions such as probation clauses, statutory leave, and insurance benefits must be reflected in every offer letter.
• Any deviation from statutory requirements must be escalated to the CHRO and Legal Counsel before offer release.

7.2 Internal Governance

• Offers must strictly align with:
  • Headcount Plan Sheet (Stage 1)
  • Compensation & Benefits Policy (Stage 1)
  • Talent Acquisition Policy (Stage 3)
• Any exceptions (e.g., out-of-band salaries, additional benefits) require written approval from CEO/CHRO.
• Conflict of interest must be avoided; no manager may approve an offer for an immediate family member or relative.

7.3 Ethical Standards

• Negotiations must avoid bias based on gender, age, race, nationality, or personal circumstances.
• Salary discussions must be anchored on skill, role value, and market benchmarks—not personal preferences or pressures.
• EVP pillars (Growth, Impact, Culture, Rewards, Balance) must be consistently reinforced in candidate communications.

7.4 Monitoring & Accountability

• HR is responsible for maintaining compliance checks during audits.
• Leadership (CEO/CHRO) holds ultimate accountability for exceptions granted.
• Any breach of compliance may lead to corrective action, including disciplinary measures for employees involved.

Outcome Expected:

• Every offer is fully compliant with law, aligned with policy, and ethically sound.
• Internal governance prevents favoritism, bias, or financial risks.
• The company maintains a strong, fair, and compliant employer reputation.

8. Review & Updates

This SOP will be reviewed on a bi-annual basis or earlier if there are changes in organizational policies, labor laws, or market compensation trends.

8.1 Review Authority

• Primary Owner: HR Department (Talent Acquisition Lead).
• Supporting Reviewers: Finance, Department Heads, CHRO.
• Final Approval: CEO/CHRO.

8.2 Triggers for Update

• Changes in labor law or statutory benefits.
• Revisions to the Compensation & Benefits Policy (Stage 1).
• Market benchmarking indicates adjustments to salary bands.
• Observed gaps or delays in the Offer Approval Workflow (Section 4).
• Audit findings or compliance breaches.

8.3 Communication of Updates

• All updates must be documented and circulated to HR, Hiring Managers, and Finance.
• The revised SOP must be uploaded to the company’s HRIS / MIC (Memorres Information Center).
• Training sessions or refresher workshops may be conducted if significant changes impact the offer/negotiation process.

Outcome Expected:

• The SOP remains current, compliant, and effective.
• Stakeholders are promptly informed of changes, ensuring consistent execution.
• Continuous improvement is embedded in the offer management process.