When it comes to attracting quality talent in a competitive market, we all think of salary negotiations. Most people, when changing jobs, will want or expect a higher salary than their previous job, and a generous increase can be seen as a powerful catalyst for attraction.
This has been proven by Hudson's research, which revealed that the top priority for job seekers looking for a new job is a "right salary offer" from the employer. But what's the difference between a good salary and a right offer, and how do you identify this distinction?
1. A good salary and the right offer: what's the difference?
To determine what constitutes a good salary for a job position, your company first needs an accurate measure of the application rate for the same position offered by other organizations. For example, a "good" salary might be 20% higher than the market average. However, this is nothing new or particularly appealing.
But "right" is a more complex and difficult issue. A fair salary proposal ensures that you pay your employees fairly for their work; it's determined by the contributions they make to your business – and also by what your business can afford.
2. Tips to help recruiters make the right salary offer.
Candidates competing for similar positions often have vastly different resumes, strengths and weaknesses, salary histories, and negotiation styles, making it difficult for recruiters to set appropriate standards. Understanding this, and as an experienced firm in the industry, we'd like to share some tips to help recruiters determine the right salary proposal for each position.
- Research market data regarding the position you need to fill. Find and collaborate with recruiters who specialize in that job, as they have connections with the market and can help you determine an appropriate salary.
- Engage directly with potential talent or professionals to understand their life priorities, career motivations, and life values. This understanding will form the basis for the salary proposal the company will offer them.
- Develop "unique benefits to motivate and encourage candidates to apply to the company." It's crucial for recruiters to understand and present the value propositions the company can offer candidates, as well as how it differentiates itself from other companies in the market. This could include a great team and unique company culture, professional management, and a clear career progression path. If two companies offer similar salaries, then these unique benefits will be something candidates will consider.
3. Talent acquisition strategies beyond salary.
In today's economic climate, with pressure for profits and profit margins, corporate budgets can sometimes be tight. But with rising living costs, raising salaries is crucial for everyone – and thankfully, salary isn't the only thing that matters in a talent acquisition strategy.
Negotiating a salary to secure a "good pay package" might be a top priority in a new job, but work-life balance and fitting in with the organization's culture are next priorities to focus on.
Therefore, in their talent acquisition strategy, businesses need to consider their entire job placement process and recognize that a good salary is only part of it, not the whole picture. Additionally, factors that are highly valued for attracting job seekers include career advancement and work-life balance. The importance of money can diminish when it is considered and replaced by other factors in the job offer.
When it comes to career development goals, employees can expect a clear career progression path within your company. So, does your business care about professional training and development programs?
For employees with young children, they will consider whether the company allows them flexibility in working hours and work arrangements. For example, being able to leave early to pick up their children from school or working from home when necessary. And this applies not only to women but also to men. Recent reports show that work-life balance is essential for men to advance their careers. The world is changing rapidly, and your business needs to ensure it can keep up and meet new demands in its recruitment process.
Therefore, a suitable job should not only address a person's financial needs but also solve life problems, increase motivation, and enhance their value. Does negotiating that eight-figure salary mean dedicating 70 hours a week to family? Does the company offer other perks that improve their quality of life or make life easier? For example, benefits like a gym or a coffee shop on campus.
All of these are important parts of the talent acquisition process.