The Importance of Salary in Hiring
Whether you are looking to hire or looking for work, salary will always play a very important role in the process. When taking an in depth look at both the applicant and company side of salary and its importance, you will see how similar of a role it plays out in the process.
Salary to the Applicant:
Looking into the importance of salary from the perspective of an applicant, more often than not, there is a disconnect between their preferred salary and whether or not they are the right fit for a position. From time to time an applicant will look into a position that is much lower of a level than what their experience is. While it might be easier to secure the job this way, this will not satisfy their financial desires. It’s best to take the approach of finding positions that you are a good match for rather than applying just to secure employment; otherwise, you are wasting your time along with the potential employer.
Often times we see candidates attempt to avoid the question “what is your ballpark salary”, because they fear they will shoot too high or low. A lot of candidates want to be considered for a position, regardless of their salary needs. This is an issue for us as recruiters/HR Managers when it comes time to make an offer. If the candidate was not honest about their needs the process starts over again.
Being honest is always ideal when it comes to salary. Be clear about your expectations and the company you are applying for will respect that.
Salary to the Company:
On the company side, salary means budget. I find that when looking for the perfect candidate to fill an opening, the salary is often inconsistent. Some companies are right on the money where as others are way out of ball park as to what they should be offering. It’s extremely important to first, evaluate the job description for the open position because often times, it’s not actually meeting the needs of the business. Once a proper title and job description is ironed out, take an in depth look at what your requirements mean salary wise. A great example is looking at a position title like “EDI Coordinator”. Let’s say you have a set budget for $80,000/year; you might be able to find someone who fits that salary range and your requirements, but if you want a specific skill set like “Mapping” that will bump the salary up $20,000/year. You might find yourself frustrated when you are receiving applicants that are way out of budget.
I cannot stress enough how important it is to understand the market salary rates for a position posted. Your budget needs to be set around your requirements or the applicants that apply will be out of skill set and salary range.
Obviously, a more competitive salary will attract more or maybe even better qualified candidates, however, offering too much might set you up for an over-qualified candidate.
I cannot reiterate enough to both the applicant and the client that salary is one of the most important parts of the hiring process. You want to have a rate that is competitive enough to get the talent you desire and good enough to keep your possible employees happy and satisfied. Keeping this in mind when posting a position should help you with employee retention.
Determining what the appropriate salary is for these open positions isn’t always easy. EDI Staffing has a Salary Analysis tool, where we can take your job title AND requirements to determine if your offering is in line with the local and national averages. I use this frequently with clients and highly recommend you take advantage of this complimentary tool.
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