Our highest priority at STRe Solutions is building long-term relationships with both jobseekers and hiring managers. The Recruiter Relations section of our newsletter offers ongoing tips to help you maximize your experience with a recruiter, regardless of whether you're seeking top talent to seamlessly join your team or searching for your next ideal position.
Candidate Tip #119
A topic that comes up frequently is compensation. As a hiring manager (or Human Resources professional) you can look at Radford data, but what is the right salary range, what fits in your budget, how do hire top talent and still keep equity in the organization? As a candidate how do you know what the right number is for you? Tips in this issue address the case where the candidate's ideal compensation is above the range for the position.
How can I demonstrate my willingness to take a pay cut to advance my career?
Once upon a time in the land of changing jobs a candidate could expect a double digit increase just to move to another company. Not so in recent times, especially in today's economy. Compensation is all about value, and fairness. If you work in a large company, public or private, your salary is probably on the higher end of the scale, and you have good benefits, maybe some interesting perks, like discount passes to Disneyland. Small start-up companies typically pay less cash with the promise of equity that will be worth something, maybe.
As you evaluate an opportunity, compensation is just one factor, and it could be a very important factor as you need to be able to pay your basic expenses and support your family. Let's assume that you can afford to take a pay cut. Now the intangible parts of a job come in to play. If you will gain valuable experience, work for a fabulous start-up, or get your dream job, you may want to consider taking a cut in salary. You might be able to negotiate a bonus based on your performance so that your total cash for the year would be comparable to where you were.
Hiring Manager Tip #119
Should I hire a candidate whose prior compensation is above my range?
Clearly the risk of hiring a candidate who is accustomed to a larger salary is that they will leave at the first opportunity they get. But, money is only one factor when candidates look at new jobs. If the candidate is truly overqualified then no matter what you pay them, they are not a good fit, e.g. hiring a Manager who has been a Vice President in their last job. That is too much of a stretch. On the other hand hiring a VP from a small company into a Director position at a larger company is probably OK.
If you find a candidate who meets your requirements and is a good cultural fit, you don't really want to toss them out with the bath water. There may be reasons why the candidate is prepared to take less money. Your location may be a desirable commute, your industry gives the candidate an opportunity to learn a new area, and this position may offer the candidate the opportunity to obtain skills they need to grow their career.