Missing out on the first choice candidate can be a major disappointment. For some HR professionals, it can even mean having to start the process all over again. At the end of the day there’s usually just one reason why orgs miss out on their top pick – money.
There are always going to be other organisations with the means to offer that bit more, and in these situations, that’s just the way the cookie crumbles. Yet as a new report from recruitment firm Robert Walters shows, some employers may be out of touch with what their preferred candidates are truly worth. As the report indicates, there are many factors to consider when it comes to remuneration – and the mix can be a challenge to get right. “Remuneration fluctuates depending on geography, industry, company budget, seniority and the job market, as well as the candidate's background. Taking the time to understand [the very latest] market rates for the position you are hiring is crucial to ensuring the offer you make is fair,” Bradley Shotland from Robert Walters said.
The report, Managing the offer process to ensure you recruit the best professional, also revealed the following statistics:
46% of professionals use salary and market research to determine what their salary should be, while the majority of employers at 59% use internal bandings defined by role type
Only a minority of candidates use the employer’s benchmark to make their decision – the majority use salary survey research and market rates
87% of employers have had a candidate turn down an offer of employment due to receiving a better one from another employer
31% of professionals surveyed believed the salary package was the most important part of the job offer
The main reason a candidate turns an offer down is due to a better offer from another employer. If that happens, do not hesitate to ask the candidate why and what exactly the other employer was able to furnish that you weren’t.
Take the feedback on board and tweak your future offers to be more competitive. Where viable, extend any benefits or initiatives offered to new employees to existing ones to help improve staff retention and engagement.