It sounds like an obvious point, but happens all too often!
Salary plays an important role in the calibre of talent you attract and retain.
The 2 most common reasons candidates turn down job offers, are that:
- compensation and benefits were not in line with their expectations;
- they received a more competitive offer;
In the highly skilled engineering and technical job market, the best candidates have a choice in where they work. While you don’t want an employee who is only motivated by money, you do want your job offer to be competitive with other companies, ensuring your business is considered a desirable place to work.
There is increasing evidence about the link between salary and overall company performance. You may have a great product or service, but the true strength of your company and its competitive advantage lies with your people, and highly sort after talent deserves and expects to be well remunerated.
A SMART COMPETITIVE SALARY POLICY WILL SUPPORT YOUR BUSINESS:
- IT SHOWS YOU CARE
A competitive salary shows the candidate that you value them, and may be seen as an indication of how fairly they will be treated as an employee, how enthusiastic you are about having them on your team, and helps you close more of your top-choice candidates.
- LOW SALARIES ARE A FALSE ECONOMY
Successful hires and employee retention should always be a core business goal.
Resorting to not hiring the right person, just to save money in the short term, may mean your company isn’t able to reach its growth targets.
The consequences of a bad hire are not limited to the additional expense for recruiting again, it can also affect office morale and your employer brand.
- VIEW NEW HIRES AS AN ASSET NOT AN EXPENSE
View your new hires as appreciating business assets. Over time hiring the right top talent will bring knowledge, experience and loyalty to your company. Qualities that will add value to your company.
TIPS ON DEVELOPING YOUR SALARY STRATEGY
- Look at your talent landscape
Look what is happening around you. Don’t just compare yourselves to similar sized companies in your own industry when pricing your roles. The competitive landscape for engineering and technical talent is broad and spreads across multiple industries.
- Compare what you can afford against what you’re willing to do
How competitively do you plan to pay?
Examine a few different scenarios to ensure the affordability of your plan. It’s important to be realistic when you define it, be transparent when you communicate it, and be enthusiastic about everything else you offer that makes you an employer of choice.
- Gain buy-in from key stakeholders
Get your key stakeholders to understand and agree the strategy and approve the salary.
REMEMBER a salary strategy isn’t ”set it and forget it”, engage with key stakeholders on a regular basis to look at where your business is today and where you want to be. Set a salary strategy that can evolve with your business.
TALK TO A RECRUITER AT CG CONSULTANTS
Our pure focus on the engineering and technical sector across multiple industries, means our specialist consultants are well placed to provide advice on salary levels.