Finding and attracting great talent is difficult. There is an endless list of companies competing against you for the very best.
The biggest obstacle standing between you and your perfect hire however is not the size of your talent pool or lack of qualified candidates or even your competition… it’s most likely your outdated compensation package.
Experienced hiring managers and recruiters can attract great passive candidates however they are going to struggle to get them to interview with you if you’re not offering competitive compensation.
Doing your research into ROI and market value for the right person is essential to build the right package for your business. Underpaying anyone brings job dissatisfaction and high employee turnover – costing your business more time and money!
How to know what salary is right?
Due to record-low unemployment rates the fight for talent has been heightened and is a job seekers market. A-listers are demanding more! Here are some tips on how to know what you should be offering…
1. Know supply and demand in the industry
Fast paced, high revenue businesses such as finance and technology often offer higher salaries because of their products and services – analyse your business industry and assess whether you have premium competition. If you’re serious about attracting this talent to your business, you must be on the same level if not better than your competition when it comes to package compensation.
2. Utilise public data
Platforms such as Glassdoor and open job ads will have a range of salaries included. Find out what your competition are paying in certain locations to make sure you’re offering a competitive package.
3. Understand the location
It doesn’t take a genius to know that the cost of living in Central London is considerably more than it is in Plymouth. Make sure your package is reasonable and reflects where the position is. Think about where your employees live, what is the average rent, how do your employees commute to work?
4. Leave room for growth
Finding great talent is fantastic but you still need to work on retaining them. Offering them the top salary range with no room for growth is not going to keep them working for you! According to CareerBuilder, 70% of employees reported that increasing salaries is the best way to boost employee retention. If the expectation of responsibility and production increases, the expectation of compensation does as well.
Offer potential employees exciting, clear and measurable expectations and you’ll be well on your way to attracting and retaining top talent! Make sure you stand out from the crowd by offering competitive compensation that reflects the skills your hire is bringing to the table and the value they bring to the company.