How to structure a remuneration package
The market for quality house building candidates has become very competitive over the past couple of years. Offering a job to the preferred candidate is no guarantee of hiring them. They may well have other offers on the table and their current employer will be reluctant to let them leave without a counter offer. So what can you do to make your salary package as compelling as possible?
The easy answer is to hike up the basic salary. But you knew that already and you don’t have a bottomless salary budget. Instead, focus on the package elements that are guaranteed and have immediate impact on the candidate’s lifestyle.
Basic salary, car or car allowance and holiday allowance fit the guaranteed and immediate criteria. Make these aspects as attractive as possible as these are the areas candidates focus on the most when assessing a job offer.
Bonuses do have a short term impact but are not guaranteed. They are often viewed with skepticism by a potential new employee and are almost discounted by many candidates when evaluating a job offer. If the candidate is highly likely to earn at least a portion of the annual bonus, shift some of it on to basic salary to make your offer more likely to be accepted.
Pension contributions are guaranteed but not immediately beneficial. In fact for many candidates they are decades away from benefiting from this aspect of their remuneration package. Above market rate pension contributions tend to have little impact on candidates who are not approaching retirement age.
Private Health Insurance is guaranteed but any tangible benefit is subject to the employee suffering ill health. Again this will have minimal sway on a candidates decision to join you.
So in summary, when designing your remuneration package apportion as much of your budget in to the guaranteed and immediate benefits as possible to maximise your appeal to a prospective new employee.
If you want to discuss anything house building recruitment related please call me on 0161 924 2384.