Making a salary offer is a pivotal time in the hiring process. As a business, you want to hire the best candidates. But you also need to consider your budget and prevent salary decisions from being based on whim or emotion. Offer too high, and you might be overpaying for talent. Offer too low, and you risk destroying trust with the candidate. Job seekers today have access to credible salary information. They know their worth. Do you? If you need some help, these tips can help you figure out and present a fair salary offer for any role. Evaluate the role Before you begin determining a salary scale, it’s crucial to evaluate the position you’re looking to fill. Start with a detailed description of the job, including all duties and responsibilities, the formal job title and time commitment. What value will this role provide to your business? How much time and energy does it require? What level of experience and certification is necessary to get the job done? Starting with this information can get you in the right state of mind to determine a fair salary range for the role. Research wages A salary guide can be a useful tool in figuring out the salary range for different roles and drilling down to numbers specific to your market. But don’t assume you can just offer a salary in the midpoint of a published range. Remember, a salary guide is a helpful tool, not a compensation strategy. You need to adjust that number based on other factors like the market’s supply of talent, your performance expectations and turnover rates. For example, if a particular skill is in short supply, offering the median salary might not cut it. On the other hand, if your organization is widely considered to be one of the best places to work for in your area, turnover is low and top performers are lining up to work for you, you might not need to pay top dollar. Consider other benefits Of course, salary is only one factor of total employee compensation, so what else does your company Read More »

The post How to Figure Out and Present a Fair Salary Offer appeared first on Accounting Principals Blog.