Compensation – Is it an open or taboo subject?
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August 12, 2010Discussion about money is often taboo, yet those who are uncomfortable talking about money upfront (both employer and employee) are starting their relationship off on the wrong foot. The employer/employee relationship should not be a “guessing” game. Good relationships are based on frank, honest communication. And, the employer sets the stage first by being upfront about the salary range being offered.
Hiring managers are often afraid to show their cards first. They believe that candidates we demand the high end of the salary range if revealed. We have found the opposite. Candidate are generally more realistic that hiring managers think. They will accept an equal or 10-15% higher salary increase if they know that upside potential is there. Generally candidates should only expect a 10-15% compensation increase when changing jobs assuming there are no geographic or drastic job responsibility differences.
As an Recruitment Process Outsourcing (RPO) firm, we always insist that our clients reveal compensation expectations. Candidates who pass through our resume filtering step are required to provide their past 3 year compensation history before moving on in the process. Knowing an candidates salary expectations in advance helps us narrow our interview process to only those candidates whose expectations are in alignment with the position.
Money is uncomfortable for many people to discuss. Yet, frank open discussions early in the process will save you time from interviewing candidates that are not a fit, and will express to qualified candidates that you are an employer with open lines of communication. Relationships are built on trust. Start building that trust by talking about money!
