- HR Jobs
The Dangers of Hiring to Fit the Budget
We all know it happens and sometimes we just have to be reminded of the fact. Trying to fit talent into a budget that is driven by what you currently pay everyone else (or their peers) in a market where talent is getting harder to find — is just asking for trouble.
"Okay what kind of trouble can I get into? Sure it might take longer to find someone, but if that person is just focused on what's in it for them — well, like I said it might take a little longer."
Hopefully that doesn't sound familiar in your company, because if it does you are not only asking for trouble, you are already in it.
There are many signals for concern here, which are reminders to get back to the basics, a few of which are these.
- Stay on top of your compensation programs and make it your practice to review them periodically, particularly as markets change, become more competitive or priorities or company initiatives dictate.
- Coming out of a recession and moving into a recovery period can totally change the value of talent and you can't afford to guess at what those changes are as they relate to your jobs.
- Know what the market is paying for top talent, specifically the type of talent you need to attract and reconcile that with how you are currently paying for similar contributions (pay structures which may have been established in potentially different times). If you are hiring below market you will have to hire a lot because you will be creating your own turnover.
- Look at your pay-for-performance as well as internal equity practices if you have them. Depending on what you have and how you administer programs like these can determine competitiveness as well.
There are a number of other areas of concern about jobs, compensation and the market that you should be assured you have addressed, but if any of the above raise questions in your mind, I'd suggest you contact a comp professional and ask her or him a few questions to determine where you stand.
It doesn't take long to get left behind, and the hiring market is improving. Don't forget — when talent gets harder to find in an improving job market, keeping the talent you have is also a concern. If a new hire won't take what you want to pay — what makes you think the people you have will be around much longer?
Give us a call if you are not sure just where to start with all of this, or if you have already determined you need the advice of an expert and have specific questions. We have been supporting businesses in the Bay Area in just that manner for nearly 23 years. We'd be glad to talk with you.
Submitted by Rod Hanna on Mon, 05/14/2012 - 15:02.Tags: