Even though compensation packages have returned to earth after years in the dot.com stratosphere, and competition for candidates is perhaps less intense than it was a few years ago, you still need to ensure that your offers are competitive for your industry.
There are a multitude of salary surveys and other tools that can help you benchmark what’s appropriate for the positions you have available. Use them. Don’t try to low ball candidates in an effort to save a bit of dough. The good ones will be insulted and will take their skills elsewhere.
If your hands are tied by higher-ups or you simply don’t have the resources to offer a competitive salary, you may be able to offset a smaller wage with other perks. But no matter what you add to the mix, be up-front with the candidate during negotiations.
When dealing with lower-than-average compensation, set appropriate expectations early on so that no one is surprised or disappointed. The candidate is going to learn of your compensation offer eventually so don’t think you can skirt the issue until the last minute, hoping to dazzle them with other, more positive, topics. Such a tactic will almost always backfire.
Be both honest and fair. This is the only way to get your relationship off to a solid start.
2003 Paul Dodd is the CEO of Head2Head, the in-house recruitment experts. For more information about improving your company’s recruitment productivity while spending less, contact Paul at 416.440.0097 or paul@head2head.ca. Or for more quick recruiting tips, visit www.head2head.ca/newsletter.php
