In 2024, one the challenges we came across was companies setting expectations that just didn’t match up with the salary they were offering. A lot of businesses were expecting candidates to take on critical roles, but the salary they offered just wasn’t the right salary for the job.
This wasn’t a small problem, it had real consequences. In fact, in our searches last year, 22% of candidates who had the right experience, skills, and values didn’t move forward because the salary wasn’t competitive enough.
What Does That Mean?
It meant those candidates were either already making more, were offered the same, or just didn’t see a big enough increase to make a change.
22% might not sound like a lot, but that’s still a pretty significant group of people who could have been a perfect fit and helped push the business forward. And while money isn’t the number one reason people look for new opportunities, most people expect at least a 10% increase when they move into a new role, especially those who are not actively looking.
Why the Right Salary Still Matters
While it’s true that money isn’t always the top reason someone looks for a new job, salary does play a big part. Most people expect a 10% to 20% increase in salary when they make a change. It’s a reflection of their experience, skills, and the value they bring, and it’s important that the salary reflects that.
It’s Not Just a Job; It’s a Career
People aren’t just looking for another job, they’re looking for a career. They want to grow with the company, make an impact, and be part of something bigger.
As an employer, it’s important to show candidates that your company is a place for long-term growth, not just a stepping stone. But for that to happen, you need to recognise their value and offer the right salary. When employees feel valued and are paid what they’re worth, they’re more likely to stick around and put in the effort to help the business succeed.
Investing in Employees: A Win-Win
When you invest in your employees, by offering the right salary and giving them opportunities for growth, it benefits everyone. Employees who feel recognised and well-compensated are more motivated, loyal, and dedicated. They’ll be the ones helping your business grow and succeed year after year.
So, if you want to keep people around for the long haul and build a strong future, make sure you’re investing in them in a way that makes sense. Pay them the right salary, show them you care, and they’ll give that back to you in a big way.
If you want people to invest in your company for the long haul, you need to invest in them too.
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.