The Key to Better Hiring: Be Honest About Compensation
When you’re hiring for a position, you’re making an important business decision that ultimately affects your bottom line. For this reason, it can be tempting to hold back information about compensation until you’ve had a chance to evaluate one or more candidates.
Unfortunately, this common employer mistake could cause you to miss out on great talent.
Why talking about compensation matters
Many companies get so wrapped up in their own budgets, plans, and needs they forget the simple fact that every job seeker is also making a very important business decision— based on their own budget, plan, and needs.
Expecting candidates to get excited about a position without adequate information about pay structure, employee benefits, and retirement options just doesn’t make sense. Your potential employees need enough details to determine whether or not they are the right person for the job. AND whether or not the job is right for them.
The old way of doing things is over. Employers can no longer afford to put off compensation discussions until the end of the hiring process.
Three out of four job seekers in a Career Builder survey said they expected to see salary information included in a job posting, and 61% expected to see information on total benefits. Meanwhile, Research by Jobvite found that money is still the number one factor in a job seeker’s decision to leave or accept a position.
Think about it.
Would you agree to hire someone to fix your car without getting an estimate first? No way! You need to know the potential cost, so you can decide if you want to have the work done there, if you can afford to have the work done there, or if you need to move on and keep looking.
The same is true for those you are looking to hire. They may be interested in your company, but they also need to determine if they want to work for you, if they can afford to work for you, or if they need to move on and keep looking.
Many employers worry that if they reveal specific compensation numbers, they will be giving away some or all of their leverage in the hiring process. This is a big concern, and a big stumbling block. It can also be a big mistake.
It is true that talking about salary early in the recruitment process will reveal your actual budget and intentions. But you’re still the employer. You’re still the one in the hiring seat. A little extra transparency won’t change that.
In fact, being transparent about your salary and benefits packages could earn you additional respect. Not only are you being upfront and honest, but now you get to make hiring and compensation decisions based on real factors like job-related skills and relevant experience.
And really, isn’t that a much more interesting and critical conversation?
Show them the money
Both you and your potential new hires need to make some very important business decisions. If you want to hire the best and brightest employees, don’t keep them in the dark about important things like salary and benefits.
In order for things to work out well, it has to be a good fit professionally, culturally, and financially. On both sides. Providing key compensation information will allow you and your future employees to make decisions in a way that benefits everyone.
Recruiting and retaining employees is easier when you can offer a comprehensive benefits plan that makes your team members feel as valuable as they are. At Combined, we build cost effective, long-lasting employee benefits strategies to keep your business and your employees in optimum health. CONTACT US