Whether your company offers a pool table, beer on tap, a benefits package or a generous holiday allowance, candidates will still be motivated by the salary on offer. There is, however, a trend in recruitment to salary match when it comes to new hires, or even offer a wage below what the person is currently being paid. Bond Williams discusses how this has the potential to backfire.
For starters, it is wrong to assume that a candidate will accept the same salary they are on or one that’s even lower just because they want to work for your company. Of course, if your business is one of the most desirable in its field and has a sparkling reputation, this will play a part but after time, candidates will expect career progression and wage increases to match.
No salary increase can lead to no commitment
Failure to numerically reward will lead to resentment and before long, the kudos of working for an employer – no matter how lauded – will wear off. People starting a new job without the buoyancy of a salary increase can often feel like they have taken an uninspiring sidestep or even a small demotion, especially if the role they have filled is more senior or complex in nature.
The ultimate upshot will be the decision to depart after a short time for a job where the compensation is more fitting, leaving the employer to start the recruitment process over again – a process that comes with financial and time implications.
It is also tempting to set a salary that represents a financial saving for your company when offering a job to a new candidate. In fact, shaving a couple of thousand pounds off what you may have paid the previous employee may sound like a good idea but it can be at a huge detriment to the incoming recruit, especially if that wage is the same or less than they earn in their current role.
Of course, the salary enough may leave the candidate with no choice but to reject an offer but what if they say yes and take up the position? Although they may have been successful in the recruitment process, the employee will mentally feel undervalued. This feeling can be compounded if they find out they are getting paid less than their predecessor, which will raise uncomfortable questions, impact productivity and discourage loyalty. If you are worried about pitching a salary too low, Bond Williams has the following advice…
5 tips to ensure you offer the right salary
If you are worried about pitching a salary too low, Bond Williams has the following advice…
- Review the average wage for the job you are recruiting for. Bond Williams has advertised thousands of vacancies and we can give you a recent sample of wage brackets for different roles so your salary doesn’t look misplaced.
- If you are replacing a member of staff, acknowledge that the salary you paid them may not reflect what you might have to offer a new hire. This is especially true if your company hasn’t give pay rises in line with inflation, skills or service.
- Expect to offer the role with a higher salary than before. This is a key point if you are using the recruitment process to revise the job specification – perhaps adding new requirements and responsibilities.
- Seriously consider whether advertising wage brackets is the right decision. It may feel clever detailing a salary range, such as ‘between £30,000 and £42,000’, as you’re sure it will encourage applications but knowing you’ll only ever offer at the very lowest end may cost you the best applicants.
- Always reward experience and success. During your CV sift and interview process, realise that some candidates are worth paying for. If someone can bring desirable skills and contacts to your company, a competitive salary is justified. A good wage will encourage them to shine and repay you with loyalty.
If you need any advice on salary setting and the general recruitment process, come to Bond Williams for free advice.