Factors that Impact Salary Offers
As an HR/payroll hiring manager or professional, you are obviously aware of the many factors that can impact a salary offer to the employee you or your hiring manager wants to hire. Unfortunately all of the salary studies, calculators, and budgeted salary range(s) a hiring manager recommends – there are no absolutes. Of course each and every HR or payroll job has a salary range that is impacted by tenure and expertise as well as job level – but here are a few things remember when hiring and setting a salary.
How badly does the position need to be filled? What are the impacts of letting the position go unfilled in terms of productivity, sales, morale, workload…? You get the idea. The more the position needs to be filled quickly, the more flexible you should be if you find the right person and that person is asking for “more.”
How competitive is the market for the position you are hiring? Are candidates within this field commanding unusually high salaries because they are in demand? Industries and even positions are often hired in cycles – so you may find yourself in an unforeseen position when it comes to offering a competitive salary.
Supply and Demand
How hard is it to find a qualified candidate? Is it possible or even likely you will have to look outside your geography to find the right person? Do candidates know just how bad the supply might be, creating a higher demand/salary? Of course it is a good idea not to let on to candidates if it has been a nightmare/near impossibility to fill a specific position – something you should tell all your hiring managers not to divulge in an interview. But if it has been difficult due to a lack of qualified candidates, a higher salary may be required to lock down the candidate you want and may be competing for.
If you’re going to give someone an aggressive offer, it sure would be nice if the employee will stick around. Don’t go above and beyond for a job jumper.
Make sure the candidate meets as many people as possible that he/she will be working with to see just how that person will get along with team members and fits within the company culture. It can often times be easier to hire someone who fits in well with the team and may not have hit every requisite you have. You can train the right person, you can’t always make someone fit in well with other people.
In the end, you know what you can afford and you know just how important it is to fill the position. Big picture is you can make the money back ten-fold if you choose the right hire.
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