It’s Time to Talk Compensation

When you hire for an open position, you’re making an important business decision that affects your bottom line. Because of this, 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 be causing you to miss out on some great talent.

How so?

Many employers get so wrapped up in their own numbers and desires they forget the simple fact that every job seeker is also making a very important business decision. And 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. In fact, many of today’s talented applicants won’t even try. Because it just doesn’t make sense.

• According to a Career Builder survey, 74% of job seekers said they expect to see salary information in a job posting, and 61% expected to see information on total benefits.
• Research by Jobvite found that money is still the number one factor in a job seeker’s decision to leave or accept a position.

Put that shoe on the other foot

Think about it. Would you agree to hire someone to fix your car without getting an estimate? No way! You need to know what the potential cost is so you can decide if you want to have the work done there, if you can afford to have the work done there, or if you need to keep on 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 keep on looking.

Help them make that decision

If you’re an employer or hiring manager who’s still afraid to talk openly about compensation early in the recruiting process, you’re living in the past. And that isn’t where today’s top talent wants to be.

Time is money. And as a busy business owner or HR professional, you’ve got limited amounts of both. Don’t waste a single minute (or dollar!) dancing around the topic of compensation.

You’ve set a salary range for the position or you wouldn’t be hiring. Be upfront from the beginning and let people know what it is.

Get over the fear

Many employers worry that if they reveal specific compensation numbers, they will be giving away some or all of their power. This fear is a big concern and a big stumbling block.

It’s true that talking about salary early in the recruitment process will take away your “I’m withholding information from you.” power. 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 some additional respect. Not only are you being upfront and honest, but now you have to negotiate pay based on REAL factors like job-related skills and relevant experience.

And honestly, 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 a very important business decision. In order for it to work out well, it’s got to meet both of your needs. It’s got to be a good fit culturally, professionally, and yes— 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.  

Recruiting and retaining employees is easier when you can proudly offer a comprehensive benefits plan that makes your team members feel as valuable as they are. At Sonus Benefits, we build cost-effective, long-lasting employee benefits strategies to keep your business and your employees in optimum health. Get in touch with Sonus to see how we can help your organization become a local employer of choice.