Discussing salary can be an awkward topic of conversation for some, but the fact is it’s an important part of the recruitment process. You can’t move forward with an applicant until a salary is negotiated and agreed upon.
Being realistic, competitive and transparent is the key to reaching a successful arrangement for both parties. Let’s look at some of these key points in more detail…
Research your competitors
As a business, it’s not only important to know what your competitors are offering to customers, but also to their staff. For you to become a true competitor you need to have an advantage over other businesses, and a large part of this is having the best team behind you to service your customers. You should research what they are paying their staff, along with other incentives such as rostered days off, and the use of company vehicles and electronic devices. Industries like to talk amongst themselves, and if you’re known as the employer who doesn’t pay well within your field, you’re likely to have a higher turnover and less chance of hiring employees who come with experience in your industry.
This is where it’s important to have a clearly defined job description. Comparing duties and responsibilities to the salary being offered will give you an indication as to whether or not it weighs up. Applicants are becoming more open to the idea of varied roles where they are required to multi-task, but let’s be honest here. If you were applying for a job and were asked to manage staff, process accounts and complete administration duties for $45k per year would you jump at the opportunity? I know I wouldn’t.
You get what you pay for
If you’re trying to attract applicants with proven experience in your field but want to pay $5k below your competitors, you will not find experienced staff. This is not a maybe, this is a definite. Trust us, we’ve tried many times to make this work and it’s always unsuccessful in the long run. If you aren’t willing to negotiate or match your competitors, you may need to consider investing some time into training a junior.
Having regular discussions surrounding salary expectations and increases ensures everyone is on the same page and having written agreements in place is a must!
Implement clearly defined processes for managing targets, KPI’s and bonuses. And inform employees of how often performance and salary reviews will take place. Try to keep performance and salary reviews separate, as differences in expectations for performance versus salary can become blurred.
How do you manage your staff salaries? What challenges do you face when hiring or reviewing your staff?