Compensation Conversation

The main responsibility of recruiters is to find candidates interested and qualified for the positions we’re recruiting on for our clients. A huge piece to qualification process is ensuring compensation expectations are in line, or at least communicated early on.

However, it’s not uncommon for the conversation to get awkward when compensation comes up or for a candidate to shy away from giving a clear answer. I hear responses such as “market rate” or “whatever the company is offering.” One reason for this is likely the old school mentality that whoever speaks first loses. While I can understand this reasoning, there isn’t winning or losing when it comes to your livelihood.

Here are a few notes to consider when going into a conversation about compensation.

1) Candidates are the market rate.

Companies can want to pay whatever they want for a position, the doesn’t guarantee they will find or keep a qualified candidate at that rate.

Last week, the Florida minimum wage increased $1.35 per hour to $10 per hour. Companies who were competitive at $10-12 per hour just a few years ago are struggling to find candidates who fit their needs at that pay rate now.

Say a company paid $10 per hour a couple years ago for a candidate with two years of administrative experience. To find someone now with the same experience they will need to pay more. How much more is hard to determine and is largely driven by candidates with two years of experience and what it would take for them to consider a new position.

If the company above asks us to recruit for an Administrative Assistant with two years of experience paying $10 per hour, the conversations with candidates can go one of two ways.

Scenario 1) We can approach it as “whatever the company is offering,” and say $10 per hour. If a qualified candidate is looking for more, they will lose some interest in the role or shut down to the role. If they agree to move on in the interview process at $10 per hour but they want $15 per hour, they likely won’t accept the position or will start the job and leave within a few months to a position paying $15 per hour. Not only is the company now without an employee again, it puts a blemish on the candidate’s reputation with TEWS and the company and a blemish on our reputation with the company.

Scenario 2) We can find a few candidates with the right skillset that are looking for over $10 per hour and present them to the hiring manager. Assuming the job qualifications are non-negotiable, the hiring manager will hopefully realize they need to increase compensation for the role. They interview the candidates and offer $15 per hour to the same candidate from Scenario 1. Now the candidate is happy. They have more money in the paycheck and they will stay with the position longer. Additionally, the end company is happy they found the right person for the role, and TEWS is happy the client and candidate are happy!

2) It’s not just about this position.

The roles we recruit on change regularly, and we have new roles come in daily. By knowing what a candidate is looking for, we can reach out when we have a position that pays in line with their expectations – or higher! If you are looking for a minimum of $60,000 but ideally want $70,000, I won’t waste your time reaching out about a position paying $50,000. However, you will be the first person I call when I have a position looking for your skillset and paying $65,000.

3) We are successful when you are successful.

Whether we work together on a contract, contract-to-hire, or direct hire, we want to you to work out in the position. We are rooting for your during the interview process, when you get the offer, and when you are in the role! By having transparent conversations about your pay expectations, we can represent you at a higher rate if needed and avoid an opportunity falling apart due to unexpected changes in compensation expectations.

4) Know your worth!

Research a realistic range for your skillset and experience. By knowing what you are worth, it doesn’t matter what any opportunity wants to pay. If you have the skills, experience, and personality for the position, advocate for yourself to get the compensation you deserve. Sometimes it may take a little longer for the right role to come along, but if your valuation is accurate, the satisfaction of that first paycheck will be better than a band-aid fix of the wrong position.

Overall, we want you to be happy in your role! While money isn’t everything, appropriate compensation plays a part in long-term happiness!