You have finally found your perfect candidate for your Operations Manager position, but she is asking $10K more than your salary range of $65-75k. You have searched for months for this perfect candidate so you don’t want to lose her. What should you offer her?
In a highly competitive market for talent which is the case right now, this employer should consider the following when making an offer:
1. Is she currently employed or in between opportunities? If employed, the candidate has the upper hand. If in between opportunities, the employer has the advantage.
2. Is she expecting other offers? Multiple offers are becoming the norm among top talent, actively looking for a career move. Be prepared to move quickly and pay high.
3. Is the position a lateral move or a career promotion? If a lateral move, an increase of 10-15% over her current salary is the norm? If it is a promotion, 15-25% may be reasonable.
4. What will it cost you to continue the search if she rejects your offer? If you are unwilling to pay a higher salary, compare the increase to the cost of continuing the search.
There are several reasons why employers are reluctant to pay higher salaries. Two legitimate reasons are:
1. Existing employees may get upset if they find out a new hire is paid more for a similar level role.
2. Future salary increases become challenging if the starting salary is high stimulating fear that the new hire could jump ship if you don’t provide annual pay increases.
Yet, there is another reason that often gets in the way of securing top talent . . . Ego. Yep, our egos get in the way. As employers we don’t want to feel like we’ve lost the negotiation battle. In a competitive market, we need to let our Egos go and look at the overall value the person can bring to the table.
If you have compensation questions regarding an immediate hiring situation, give us a call at 317-578-1310.