Will Bumping up Employee Compensation Allow You to Hire Higher-Caliber Talent?
It’s always discouraging to post an open position at your company and receive a lukewarm response. If you’re not getting many resumes or the caliber of candidate you’re attracting doesn’t meet your standards, the employee compensation you’re offering might be the problem.
The best and brightest candidates are well aware they have a variety of job options. Anyone worth your time isn’t solely focused on salary, but it is a key factor. The amount of money a person earns determines their standard of living, so if your competitor is offering work that’s just as interesting, but with higher pay, they’re going to take that route.
Never offer a salary you can’t afford or don’t think the person is worth, but do consider a marginal increase to make the position more appealing. Raising the salary just a bit might be all it takes to appeal to the best candidates your industry has to offer.
3 Reasons to Increase Starting Salaries
Giving employee compensation a much-needed boost might mean you need to move a few things around in the budget, but you’ll gain these three benefits.
- Appeal to Better Talent. This one is a no-brainer for attracting and retaining top talent. If you’re willing to pay people more, your job postings will suddenly catch the eye of professionals at the top of their field. The success of your company will have no bounds with these employees on your team, allowing you to enjoy exponential growth and meet organizational goals.
- Higher Retention Rates. Even if you get lucky and are able to attract a leading candidate, they won’t stay long if they’re being paid peanuts. If you pay a higher salary from the very beginning, people won’t consider the job a temporary learning opportunity before moving on to a company willing to pay a competitive wage. Instead, they’ll stay at your organization, because you’re offering everything they want.
- Improved Reputation. Companies with a reputation of paying low salaries carry a social stigma. Top-quality candidates won’t even consider working for these organizations and the public considers them stingy. As a result of the low wages, people assume the products and services produced by the business are subpar, which doesn’t help sales.
If you’re having trouble attracting top talent, consider partnering with a human resources staffing agency like Sparks Group. We consistently deliver high-quality employees and customized solutions, including traditional staffing and recruiting, direct placement assistance, payroll services and a workforce solutions program for companies that largely rely on contract workers.