All hiring managers know that candidates are uniquely different from one another. Yet one thing unites every UK worker: The need for a salary!
Sure, it might not be top of everyone’s list, but if money was no object, we’re sure most people would find something to do other than working each day. Like back-to-back holidays, spa sessions, teeing off or shopping on repeat. At least, that’s what we’d be doing if the bank account allowed it!
How come, if most people need money to survive, is everyone suddenly quitting their jobs? In 2021, UK workers resigned at a higher rate than ever, becoming known as the year of the Great Resignation. While some experts say it’s a Covid legacy, others argue it was a trend long before the virus appeared. Either way, it’s a real-life issue and a situation recruiters and hiring managers can’t afford to ignore if businesses are to continue progressing.
How much do you value a salary?
People in the post-Covid era are picky - and why not, when we spend a huge amount of our lives working? While baby boomers have re-assessed what matters most (for many, it’s precious time with the family), those at the younger end of the scale - core workers aged 18 to 35 years - expect much more from their jobs than a salary, with wellbeing ranking high on the priority list.
Yet money hasn’t gone out of the window altogether, and don’t be fooled into thinking employees will settle for less than their worth in exchange for a subsidised gym membership or monthly massage. Yes, compensation does still matter! And if a competitor looks the same as you on paper but wants to offer a higher salary, who do you think Mr or Ms picky candidate will choose?
Which brings us to salary benchmarking, a process long since used by recruiters and hiring managers to ensure a business attracts, places and retains the type of talent the company requires to grow and thrive.
In the current uber-competitive climate of sourcing and placing people, here’s why salary benchmarking matters more than ever.
Stay ahead of the hiring pack
Recruiting can be tough at any time, and it's certainly the case at the minute, with candidates more particular than ever about their new role. They really do want their cake and eat it – that's great benefits, flexible working and all kinds of other perks PLUS the right salary to go with it. Salary benchmarking helps you to recognise the correct compensation to include as part of your job offer, assuring your place as a front-runner in the race to fulfil your vacancy.
Be ready to negotiate
Most jobseekers have a clear amount in mind when looking for their next role. Here's the thing, though – it's not always a warranted amount! Yet if you have no idea of what the current rate is for the role you're recruiting aiming to fill, you're standing on quicksand. By salary benchmarking, you're arming yourself with 100% up-to-date and relevant information useful for budgeting and when negotiating the salary package with your potential candidate. Because however desperate you might be to increase headcount, it should never come at a high business cost.
Not all salary benchmarking is equal…
As you will appreciate, the UK employment landscape changes from one city or town to the next. For example, a care worker in London is likely to earn more than someone completing the same role across the same hours but situated somewhere in the North. This makes local salary benchmarking crucial if you're hoping to arm yourselves with intelligence that reflects the expected pay bracket within your region.
A great retention tool
If you're tasked with keeping your current workers happy, this is a deep and wide-reaching responsibility across all aspects of their work – including their compensation. Often, workers look to jump ship when offered more money elsewhere. And how do you minimise the risk of them looking outside your four walls in the first place? You make sure they are well looked after right where they are! Salary benchmarking can help you know what's happening in similar roles elsewhere and move your worker's compensation scale accordingly. Hopefully, it's already bang on the money – and if it's not, a pay rise will come as a pleasant surprise to your employee!
Keep hiring costs low
Nobody likes employee churn, and for many valid reasons. But perhaps the key driver for HR specialists is that it keeps the cost of recruiting to a minimum. While this figure differs from one role (and company) to the next, it's safe to say it's money better spent on other things - like team treats, for example. A salary benchmarking exercise doesn't take long to complete or break the bank. For a small investment, you'll have peace of mind that you're paying your current individuals and new hires the right level of compensation to keep them happy over the long term.
Are you a recruiter struggling to hire based on compensation?
121 are recruitment specialists with lots of useful advice to help you achieve your employment objectives – whether you’re an employer or a want-to-be employee. Arrange a chat with one of our professional team today! Please call us on 01904 769142.