In twenty years of recruitment I can count on the fingers of one hand how many times I have placed someone on the same salary as they have with their current job. In short, it doesn’t really happen. Candidates are always looking for a rise. Whether its to offset the risk of moving employer or simply that a job move allows them the best opportunity to negotiate.
Often this increment is overlooked when the hiring company is setting a salary budget for a position. It is commonplace to simply set the basic salary at perceived market rate and start the process from there. But if all the potential candidates are already earning market rate then there is no financial incentive to move.
So a simple sense test for your salary level is to take 10% off your proposed basic salary and ask yourself “Is there a good number of possible candidates in the market on this figure?” Unless the answer is “Yes” you are going to rely on finding someone who is out of work or so desperate to leave their current employer they are willing to move for the same package. Hardly a strategy to attract the top performers in the sector.
If you want further advice on getting your salary levels right please call me on 0161 924 2384.
Communities Secretary, Sajid Javid, announces an eight week review into the mechanics of house purchase in which the stated aim is to be ‘faster and less stressful’.
Read more at: BBC News
Within a week, Communities Secretary, Sajid Javid, was announcing that the government should consider prioritising investing in affordable housing even if that means borrowing more, a big change from the deficit reduction trumps all approach of recent years.
Read more at: BBC News
Last week saw a clear indication that the government has identified housing as an area it needs to be doing better on.
Chastened by the loss of their working majority, the Conservatives appear to be ready to prioritise the “broken housing market” in a bid to win back electoral support. It started with a roundtable discussion in Number 10 with industry luminaries such as Pete Redfern and David Thomas.
Read more at: Housebuilder
Chances are that if you have been trying to hire in to your company recently someone you have offered a job to has accepted, resigned at their present employer only to be persuaded to stay with a counter offer at some point during their notice period.
It’s hugely frustrating.
It is also very costly in terms of time because you are often back to square one and have to restart the recruitment process. This often puts you back several months, leaving your current team to take the strain in the meantime.
So how can all this be avoided?
There is no single fail safe method. However, using the following guidelines will vastly improve your chances of avoiding this scenario:
1. Consider the non monetary aspects of your job offer from the candidates perspective. Is your job closer to home for the candidate, for example? If your job is very similar to the candidate’s current job with the only difference being a small uplift in salary you are very vulnerable to a counter offer. Choose a candidate who has additional reasons for wanting to join you beyond salary.
2. Make your best financial offer first time. The harder a candidate has to negotiate to get to a point they are willing to accept, the more doubts will creep in to their mind about if a move to your company is the right thing to do. Going in to resign with any doubts makes them wide open to a counter offer.
3. Promises of future promotion are rarely enough. If you try to recruit a candidate on the basis of a small increase in salary and responsibility now, with promises of an uplift in both in six months time rarely works. When they go in to resign their current employer can easily match promises for the future. Whether those pledges materialise won’t matter because the candidate will have decided to stay long before they are put to the test.
I hope this helps. If you want to discuss this or any other recruitment related subject please feel free to call me on 0161 924 2384.