In 2024, one of the biggest challenges we observed was companies setting expectations that didn’t match the salary offered. Many businesses expected candidates to take on critical roles, but the compensation simply wasn’t competitive.
This mismatch had real consequences. In our searches last year, 22% of qualified candidates—those with the right experience, skills, and values—didn’t move forward because the salary didn’t meet their expectations.
Why Salary Matters More Than You Think
Offering the right salary isn’t just about money; it’s about respecting the value employees bring. Most people expect a 10% to 20% increase when moving to a new role. Even if money isn’t the top reason someone changes jobs, it’s often the deciding factor.
When salary aligns with expectations:
- Candidates feel recognized for their experience and skills.
- Businesses attract top talent instead of losing them to competitors.
- Employees are more motivated and committed long-term.
Salary vs. Career Growth
People aren’t just looking for a job—they want a career. Candidates want to grow, make an impact, and contribute to something bigger than themselves.
Offering the right salary signals that your company values employees as long-term contributors. When staff feel fairly compensated, they are more likely to stay and invest their effort into helping the business succeed.
Investing in Employees: A Win-Win
Paying the right salary is an investment, not a cost. Employees who feel fairly treated are:
- More motivated to perform at their best.
- Loyal and less likely to leave.
- Engaged in driving business growth.
When your team thrives, your company thrives. Competitive salaries paired with opportunities for learning and career progression create a workforce that drives long-term success.
Tips for Setting the Right Salary
- Benchmark Against the Market: Research similar roles in your sector to ensure your offer is competitive.
- Consider Experience and Skills: Factor in what the candidate brings beyond the job description.
- Be Transparent: Clearly communicate the salary range and benefits upfront.
- Review Regularly: Update salary bands to reflect market changes and employee performance.
By paying attention to these steps, businesses can retain top talent, reduce turnover, and foster a culture where employees feel valued.
Conclusion: Salary Is More Than a Number
The right salary is key to building long-term success. It’s not just about attracting candidates; it’s about keeping them, motivating them, and helping them grow alongside your business.
Investing in fair pay today pays off tomorrow—with higher retention, stronger engagement, and a team ready to drive your company forward.
Following our recent half-year review, we’re eager to share insights that can enhance your recruitment strategies. For a detailed overview, watch Sandra Hill‘s video below as she outlines our findings!
What makes your company successful? The people who work for you
According to a recent survey, 17% of UK employees planned to give their notice at work in order to pursue a higher-paying job, while a staggering 94% agreed that household incomes could not keep up with the cost-of-living crisis.
In light of the recent the cost-of-living crisis and Great Resignation* movement, some companies have given their employees one-time payments and/or pay raises.
*The ‘Great Resignation’ is the name given to the trend of people choosing to quit or change their jobs, or considering doing so in the near future, largely attributed to the work and life changes caused by the Covid-19 pandemic.
We asked on LinkedIn last week, “When was the last time you got a pay rise?”
69% had received a pay raise in the last year, demonstrating that a lot of companies realised the need to raise salaries to keep up with the cost of living, as well as understanding that in order to retain their most valued employees, the must show them they value them and their efforts for the company.
Giving employees pay rises on a regular basis demonstrates that you value them and their efforts for the company. Increases in salary can promote morale, increase employee satisfaction, and motivate employees to work hard.
Salary is often the simplest way for businesses to attract and retain people.
As the cost of living has grown since the pandemic, salary has become one of the main motivators for many people. Although it is not always the primary motivator for some, if it is incorrect, it can demotivate.
When attracting new talent, it is just as important to make sure the salary you are offering is right. We have seen it many times where companies have missed out on exceptional people because their offer is lower than their current salary package and market average.
Prepare to discuss salaries and benefits during the hiring process. While you may have previously screened candidates based on their desired salary, it is also vital to discuss other bonuses and perks that are accessible to candidates. This is another opportunity to emphasise the benefits of working for the organisation.
“You want to make the right offer to the best candidate,” says Sandra. “To ensure you’re interviewing top talent that will be engaged in the process, strongly consider partnering with a recruiter to find A* players that will move your company forward. They can represent your brand effectively and present candidates to you that are thoroughly screened and informed. Not only will this weed out weaker candidates, but it’ll also help you experience fewer rejections from seemingly strong contenders.”
Summary
If you do not pay employees what they deserve, they will begin looking for positions that pay a competitive salary. This puts you in a difficult situation since you will not only lose your greatest people, but you will also face the massive and costly task of hiring new people.
Your employees are the ones who ensure the success of your business, and they are your most valuable asset. It is essential you look after your employees, because your company is only as good as its greatest employees.