The term competitive salary is, in its nature, quite a vague one. This vagueness can work in your favor as an employer, but it can also work against you. By telling candidates you’re competitive, you risk losing them if a competitor is willing to offer a higher wage. So, to make sure the salary you’re offering is going to win over your desired candidate, you need to do your research. Below are three simple tips that will help you decide whether or not the salary you’re proposing to potential employees fits within the hiring market.
Use a salary calculator
One of the fastest, easiest and most effective ways to check whether the salary you’re offering is competitive is by using a salary calculator. Salary calculators are a great way to gain insight into the average wages being offered by those in your industry. Many salary calculators also take into account regional differences and give you the full picture on how an offered salary fits in within the market.
Enquire with similar companies
Armed with information on local competitors, you’ll be able to make more informed decisions on what salary to offer your preferred candidate. Speak to recruitment professionals and do some digging on the roles and salaries being offered by other companies. Whilst this isn’t guaranteed to bring back results, especially if everyone is offering a competitive salary, you may be able to find out where your company fits within the employing market.
Knowing your candidate’s worth
Whether you're offering the job to a previously unknown candidate or as part of a promotion, you should always consider your competitive salary in relation to your candidate:
- Are they very experienced?
- Do they have more skills than those listed on the job description?
- Or do they simply bring a fresh attitude that your business needs?
Sometimes the best way to offer a competitive salary is to pay the candidate what you truly believe they’re worth. Think about the value they would bring to the company, and use this information to present a sensible offer. If you’ve found your dream candidate within a highly competitive industry, sometimes the competitive salary is the one that will ensure you get the employee.
No matter what industry you’re hiring in, it’s important you understand the real value of the skills and qualities you’re looking for. Before entering into salary negotiations with your chosen candidate, take the time to consider where your company and the role fits within the market. Find out what other hiring companies are offering for a similar role, and think about what this individual candidate could bring to your business.