Here is some key factors involving salary that any HR manager should take into account.
1. Low salary is definitely not the final purpose
High quality human resources is something worth investing; therefore, it is actually posing a higher cost if you offer low salaries to potential application. All big organizations acknowledge the necessarily of paying a competitive salary. However, it would take leaders quite a lot of time and money to identify how much is “competitive”, especially compared to other competitors in the market.
Your company may have a great quality of product or service, but the real success of the firm goes together with the people, that is the reason why well remuneration is crucial for talent acquisition. Especially in the field of high skilled and professional job, the leaving of a skilled employee can often cost more than double their salary in a year, along with the intangible cost of downturn in productivity.
In addition, paying more for high quality talent will save organization other sunk costs for education and training programs. When it comes to sourcing top talent, companies without attractive payment package will be likely to put themselves out of contention.
A highly turnover rate in employment represents a company with poor performance, ruining brand image and decreasing staff morale.
2. But salary is not the whole thing
It is true that salary is more likely to be the first thing that applicant will consider when applying for any position. However, it is indeed not the only factor leading to their final decision. Other factors worth concerning is the bonuses, career opportunities, company reputation and working environment.
If you cannot offer the highest salary, you can focus on other important factors in the package. It would take some research into target candidates to identify their own preferences and requirements. For example, millennial may be more interested in challenging jobs or jobs involving travelling and meeting other people; while candidates with family will have a tendency to choose more stable job with attractive healthcare and pension package.
3. Offering more Flexibility
One of the most solution for talent acquisition strategy is to offer some degree of flexibility. Flexibility can be seen in may forms.
One of the most common is flexible working time, in which employee can choose flexible start and finish time as long as they fulfill all the required workload and working hours. Parents now can finish early so that they can go to their kids’ school to pick up.
Other forms of flexibility may be free-style dressing and decorating their own workspace, especially in the arena of creative jobs.
Offering flexibility will generate better staff morale, and being a big plus for applicant decision for a company.
Faro Vietnam is a professional recruitment consultant company, offering the best service package in term of salary policy consultancy and talent recruitment strategy. Companies which have regular recruitment needs, or wanting to maximize the exposure of job postings to the most suitable talent will save considerable time and money by using high quality HR service from Faro Vietnam.