If you want to attract the right candidates to your company, you need to make sure you’re offering competitive pay. Higher pay will attract top talent and reduce your turnover. But you also need to make sure you’re not paying your employees more than you can afford. There’s a lot to consider when you’re trying to figure out what kind of salary to offer. Here’s how to determine the right level of compensation for a job.
Consider years of experience
The more experience and higher education level a candidate has, the more they deserve to be paid. So if you specify you’re seeking candidates with a bachelor’s or master’s degree, you better be able to pay at that level.
Keep it relative to the industry
Some industries, just based on popularity or the revenues they yield, command larger salaries than others. For example, really advanced math skills in the education field aren’t going to earn as much money as those same skills would in insurance or finance.
Scale it to the location
Depending on the cost of living in your geographic location, you might have to raise or lower your salary. It’s generally a lot less expensive to live in more rural areas than it is in major cities or on either of the coasts.
Evaluate skills and qualifications
Don’t rely on simple job titles when it comes to determining pay grade. If you’re requiring specific, rare skills, you’ll have to pay higher than if you’re willing to hire someone who’s less experienced or with a lesser skill set.
Be aware of supply and demand
Know how common the skills and qualifications are for the position you’re looking to hire. If you’re looking for something specific, but there are a lot of qualified, talented candidates out there who meet your description, you’ll have to be willing to offer a larger salary so they don’t get hired by the competition.
Be prepared to offer a fair price
If you’re not willing to offer a competitive salary, you also have to be prepared not to attract the talent you want. Which means you’ll either have to let the position remain open or hire someone who might not be a perfect match. And if you can’t afford to pay the competitive salary, see what other perks you might be able to offer—professional development opportunities, flex scheduling or more vacation time—anything to attract the best candidates.
For more tips on hiring the top talent to power your company and achieve sustainable growth, contact PrideStaff St. Pete Clearwater today.