When you’re filling an open position, you’re making an important business decision that ultimately affects your bottom line. For this reason, it can be tempting to hold back information about compensation until you’ve had a chance to evaluate one or more candidates.
But this common employer mistake could cause you to miss out on some first class talent.
Hiring isn’t a one way street
Many employers get so wrapped up in their own budgets, plans, and desires they forget the simple fact that every job seeker is also making a very important business decision— one that drastically affects his or her bottom line.
Expecting candidates to be able to do this without providing adequate information about compensation packages is asking an awful lot. Without a full picture of pay structure, employee benefits, and retirement options, many applicants won’t even try. Because it just doesn’t make sense.
The old way of doing things is over. Employers can no longer afford to put off compensation discussions until the end of the hiring process.
Three out of four job seekers in a Career Builder survey said they expected to see salary information included in a job posting, and 61% expected to see information on total benefits. Meanwhile, Research by Jobvite found that money is still the number one factor in a job seeker’s decision to leave or accept a position.
Think about it. Would you agree to hire someone to fix your car without getting an estimate? No way! You need to know the potential cost, so you can decide if you want to have the work done at that shop, if you can afford to have the work done at that shop, or if you need to move on and keep looking.
The same is true for those you are looking to hire. They may be interested in your company, but they also need to determine if they want to work for you, if they can afford to work for you, or if they need to move on and keep looking.
Knowledge is power
Many employers worry that if they reveal specific compensation numbers, they will be giving away some or all of their leverage. This is a big concern, and a big stumbling block.
It is true that talking about salary early in the recruitment process will reveal your actual budget and intentions. But you’re still the employer. You’re still the one in the hiring seat. A little extra transparency won’t change that.
In fact, being transparent about your salary and benefits packages could earn you additional respect. Not only are you being upfront and honest, but now you get to make hiring and compensation decisions based on real factors like job-related skills and relevant experience.
And really, isn’t that a much more interesting and critical conversation?
Put it out there
If you want to hire the best and brightest employees, don’t keep them in the dark.
At the end of the day, you and your potential new hire are both making very important business decisions. In order for it to work out well, it’s got to be a good fit culturally, professionally, and financially. On both sides. Providing key compensation information will allow you and your future employees to make decisions in the most effective way. Now that’s real power.
At Raffa Financial, we help clients identify organizational challenges, create big picture strategies, and put customized solutions in place. From tailored benefit programs to custom retirement plans to risk management services, we’ve got you covered.
Photo by Everett Collection