Businesses are faced with difficult decisions when trying to retain and attract talent, especially in today’s competitive job market, and one of the most business critical aspects of a recruitment drive is the salaries available. While hiring managers might want to offer a market-beating pay and perks package, it might not be financially possible due to the increasing economic pressures impacting businesses. What’s important to remember, however, is that during the ongoing hiring crisis, it’s vital to prioritise investing in candidates who can add real value to your team. The bedrock of a business is its team and cutting corners, and salaries, could have a big impact in the long run.
In this article, we’re exploring the potential impacts of offering a job with a below market salary and we’re sharing our thoughts on best practices for recruiting the right candidates for the role.
Know your worth
When candidates are embarking on the job search process, there are many guides and resources that will tell them to know their worth. One of the first steps that we encourage candidates to do is to look to analyse the market and understand where their qualifications, skills, and experience places them on the career ladder, and ultimately what opportunities and remuneration they should expect.
As such, candidates will be applying to jobs with an ideal salary in mind, based on what they currently earn and where they believe they fit within the market. While it’s generally accepted across public practice accounting for job adverts to be posted with wide salary bands, due to skill sets between comparative candidates for the same role varying significantly, there is a market standard that should be reflected in the job’s salary guide.
Presenting a candidate with a job offer where the salary falls short of expectations or the market standard, can leave a bad taste in the candidate’s mouth. Whilst it shouldn’t be taken personally, the salary ultimately reflects the person’s worth to the company and going low could suggest that their skillset isn’t worth as much to your firm.
A headache further down the line
Say you offer a candidate a lower salary than they expected and they accepted in on the basis that the rest of the offer met their expectations and they saw it as a good opportunity for experience and development. This might seem like a win at the time, as your firm has secured talent at a lower rate. But, what happens in the months to come if the candidate is excelling in the role and starts to feel undervalued?
Paying your staff below market rate often leads to a high turnover rate which, during a period where talent retention is critical, could have a big impact across the board. Not only would a high turnover rate impact your team’s dynamic, it could also create poor rapport with clients and harm your firm’s reputation.
You’ve got to be in it to win it
Public practice accounting is a competitive recruitment landscape where there’s limited candidates on the market and firms are competing with one another to secure the best talent. In this candidate driven market, candidates are likely to be attending multiple interviews with different firms and could be presented with a number of options. If your firm is offering low, you’re likely to be overlooked and a firm with a more attractive overall package will come out on top.
The saying ‘you get what you pay for’ rings true in these circumstances, as offering a low salary will attract less qualified candidates. Highly skilled and experienced candidates will be seeking a salary that reflects and respects the work they’ve put in to building a progressive career in practice.
We’ve shared our thoughts on the importance of investing in talent to combat the hiring crisis before, but we can’t stress enough the importance of a solid team. Whether you consider your service offering, your business longevity, or your working culture, investing in building and maintaining a strong team secures success.
We understand it’s not an easy balance to get right, but that’s where we can help. Here at Public Practice Recruitment Ltd, we don’t just simply place candidates in jobs. Whilst we have a proven track record of doing that well, we also work closely with firms to steer their recruitment needs in the right direction. Firms need to work hard to stand out from the crowd and it’s exciting to see some truly forward-thinking teams paving the way when it comes to market-leading salaries and modern benefits packages.
Whether you have job roles to fill or your firm would benefit from a sounding board for your recruitment plans, we’re here to help. Contact the team today.
