A good compensation offer is one of your strongest weapons to attract talent, especially in this competitive market. And while you, as the employer, usually give a salary range when you post a job, you’re still open for negotiations. This is where setting salary expectations come in.
Why setting salary expectations is important
In a survey, insufficient pay tops the list of reasons why employees quit. And, according to a 2017 report by Jobvite, 42% of job seekers reject job offers due to salary, and another 30% said salary was the main reason they left their current job. Overall, these statistics only prove that a good salary is still one of your best bets in attracting and retaining talent, the softer influences next.
And when it comes to money, it’s best to be transparent as early as possible. Here are the reasons why you should start setting salary expectations as early as during the interview:
Did you know that 90% of job-seekers say that it’s important for them to work in companies embracing transparency? Setting salary expectations early show that you embrace transparency in your organization. This also shows that you don’t shy away from not commonly discussed topics about such as compensation. Being transparent also allows you and the candidate to be able to talk better regarding the job and your expectations with each other.
Trust is essential in any relationship. When you lay down your salary expectations as early as the interview, you allow yourself to be transparent and honest. These then help in building trust. A candidate that trusts the employer will be more open to talking about the job. This allows you to better see if he or she is a match for your organization.
Save Time on Negotiations
Talking early about the salary saves you and the candidate time. If you can’t afford the expected compensation of the candidate, be honest about it rather than keeping up false pretenses. When you discuss compensation early on, it also gives you the time to properly position your offer–your whole package more than the base pay of the job.
While a good salary is not the be-all and end-all of a job offer, it’s still important. Combine this with having an efficient pay structure for your organization and it may help your organization better attract and retain talent.