You’re Too Cheap to Attract Great Talent!

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The biggest obstacle standing between you and your “perfect hire” is not the size of the talent pool or a lack of qualified candidates who meet your expectations…

Your biggest obstacle is YOU and your outdated compensation package.

Any hiring manager or recruiter worth her weight can unearth the most passive job seekers. However, even the best will have trouble getting top talent to the interview table if you are not offering a competitive compensation package.

Download your 2018 Compensation Guide to learn how to avoid low-balling the candidates you want!

Building the right package can be tricky business. Underpaying employees breeds job dissatisfaction and high turnover, ultimately costing your organization more time and money. Conversely, overpaying employees brings with it a whole host of other problems: discouraging the right kind of turnover, entitled employees, and being bound to a high salary.

How to Create a Competitive Salary to Attract A-Players Without Breaking the Budget…

 

Hiring in a tight market

You want the cream of the hiring crop? Find out what they’re looking for!

Know Supply & Demand in the Market

From tech to finance, manufacturing to retail, record-low unemployment rates have heightened the war for talent. It is a job seeker’s market. They are unwilling to (nor do they have to) stick around in jobs they don’t enjoy. More importantly, they are not making lateral transitions. A-listers are demanding more. And companies are expecting more from their hires. They want the cream of the crop to rise to the top… of the candidate pool. As a result, employers who want to draw Top Talent to the negotiating table must have their finger on the competitive compensation pulse.

Know Supply & Demand in the Industry

Some industries bear the burden of offering higher salaries because their products or services are more complex. Is your industry one of these? If so, the talent you are looking for expects to be paid at a premium. Budget accordingly and be willing to offer a competitive package. Do not low ball potential hires because your industry is less specialized. You want to attract the highest quality candidates your organization can afford.

Hiring

Job seekers have choices ~ Make sure yours is the best!

Ask your friends what they’re doing

In today’s market, the candidate you want is entertaining multiple offers- That’s a fact. Don’t lose them to your friends or your enemies. Read the latest salary surveys  and government reports, in addition to consulting with your network to make sure your compensation package is up to date and competitive.

Understand Location, Location, Location

You don’t have to spend hours watching House Hunters to know that the cost of living is significantly cheaper in Waco, Texas than San Diego, California. Cost of living is reflected in the price per square foot of a home in the area and the average salary. For example, someone in New York will earn a salary 35% higher across the board regardless of level. Keeping abreast to several factors will help determine a reasonable salary for your location: Where do most of your employees live? Do most rent or own? What is the average rent? What is the median home price? How do your employees commute to work? The answers to these questions will be a key factor in solving the salary equation.

Leave room for growth

Employees expect opportunities for growth in both role and compensation. Offering incentives such as stock options and bonuses will get those A Players in the door. You will not retain them if they are at the top of their salary range in year one. 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.

Hiring and compensation

Job seekers aren’t interested in peanuts!

To quote one of TurningPoint’s own recruiters, “If you pay peanuts, you get monkeys.” Attracting and retaining top talent is not rocket science. Offer employees an exciting, challenging job with clear expectations and measurable. Ensure there is potential for growth and a solid team to work with. And, most importantly, offer a competitive compensation that reflects the skills your hire is bringing to the table and the value they bring to the company.

Want more tips on how to attract, hire, and retain the RIGHT talent?

Download The Ultimate Recruiting Cheat Sheet

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Showing 2 comments
  • Sandrene Carlos
    Reply

    Compensation packages must really be competitive. I agree with the article that recruiters must know the value of supply and demand. I work in a recruitment agency in Manila and I believe that we cannot provide a top level candidate with an offer that would be easily overpowered by another offer of a different company. We have to remember that this candidate is not just really after ‘getting that job’ but they are after the benefits and gains most especially that they know too well that they are the ones needed by the company to provide more growth in the organization. This is such a good read!

    • Ken Schmitt & Vicky Willenberg
      Reply

      Sandrene ~ You nailed it! Your comment is right on the money. Candidates DO know their value and are rarely willing to accept anything less than they’re worth. Employers need to be hyper-aware of the supply and demand and adapt their compensation accordingly.
      Thanks so much for your insights!
      Glad you like the article & feel free to share it with your network.
      Ken

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