Monday, October 28th, 2019
Hiring is a science. Determining if your offers are competitive takes a sound strategy, years of experience, and plenty of research. Without completing your due diligence, you risk having topnotch talent pass you by.
Companies often have to balance competitive wages with the realities of budgets. For example, during the late 2000’s recession many companies were forced to do more with less, and were unable to hire the game-changing employees they desire. Still, many companies, even when flush enough to chase new talent, get it wrong by failing to account for key factors that go into compensation. Today we’ll discuss three things you should consider to ensure you’re pay is competitive.
The State of the Market
While all three factors can fluctuate, the market is always most fickle. At times you might find deep pools of candidates, while other times there may just not be many candidates when it’s your time to hire. Certain jobs will be harder to fill, whether that’s a candidate with a specific skill set or someone who will be a company leader. In cases like these, you might need to increase your offers.
Location, Location, Location
Your geographical location will also dictate proper compensation for potential employees. While it might not always make sense that there’s a gap in pay from city to city, it’s a reality. Reviewing online job listings and consulting with a third-party recruiter will give you guidance, and ensure that you’re being competitive in your given market.
Compensation by Position
Of course, particular positions pay more than others. There’s a reason company leadership roles demand more pay than entry-level positions: experience matters, so you’ll probably have to offer higher compensation for more seasoned and skilled candidates. While you can once again consult online resources to deduce the going rate for your open position, just know that it’s going to vary depending on skill set and industry.
You Get What You Pay For
While the onus typically falls on your HR department to handle the detective work, keep in mind that the right recruiting partner can also help you with your due diligence. That includes providing guidance around those three factors, as well as vetting the candidates themselves. Ultimately, a variety of factors will play into what a potential new employee is worth. To remain competitive, be prepared that you may be forced to open your wallet a little wider than you’d like to.