Salary bench-marking and how it effects attraction, recruitment & Onboarding
The impact of being good, average or even bad when it comes to paying employee salaries can of course be hugely important. How do you know what to pay as a base salary in order to attract the best talent?
Beyond just chucking money at salaries in order to compete with your competition, you will obviously want to get a return on your investment and not pay beyond what you ultimately need to or what is fair/market rate. Who can help?
Annual salary reports released by various sources can be a good guide, as can Indeed or LinkedIn. However, using these sources may not always be specific for every role within each industry sector. Most headhunters you can choose to partner with will have a wealth of expertise within their given field. If they are a specialist recruiter for the specific skill set you need, within your specific industry then ask them to benchmark your role and discuss what a lower and upper range could look like.
We sometimes find clients wanting the world when hiring, but not having the budget or inclination to pay what is needed – there is an element of paying more and getting more. Salaries are part of a wider package so there are often other things to offer such as flexible working, more holidays, share options which can help numb the pain of a low base salary. Each candidate will be motivated in different ways.
Ultimately It is usually sensible to pay slightly more than key competitors as a rule of thumb. Being in the top 50th percentile for the job description tends to make the most sense in order to compete effectively. But, if you don’t ask or research then you don’t know. Don’t rely on previous post holder salaries – find out what the going rate is in the market for what you need and be competitive.