During the recession, employer competition for talent was at an all-time low, and companies could get away with hiring talent at lower salaries. Today, market demands for top tech talent have surged—and salaries are rising as a result. To stay competitive, companies need to be prepared to offer strong salaries. In fact, it’s non-negotiable, given the number of opportunities that top employees have in front of them.
As a Hiring Manager, you see this trend every day. Recognizing the need for higher wages, you’re prepared to make your case and fight the battle for better pay. The challenge, however, is that your c-suite may not see eye to eye with you in meeting this need. After all, salary increases will bump up your organization’s line item expenses.
What you need to do is focus on ROI, not costs. Share the following trends with your company leaders to help them see why they should pay more for top tech talent.
Trend #1: Top hires are more productive
Take a look at your top candidates’ track records. The most common pattern that you’ll see is that these individuals are able to accomplish greater results in less time. With this perspective, an extra $20,000 becomes pennies for your organization, given the value that your new hire will bring to the table. When initiating pay discussions with your c-suite, focus on your candidates’ added value—not line item expenses.
Trend #2: Well-paid employees stick around longer
It’s in your company’s best interest to present your most competitive offer. High pay gives candidates a reason to stick around and stop looking for greener pastures. Not to mention, a strong offer is a clear sign that your company cares about your employees’ well being.
Given the high rates of attrition and disengagement that characterize today’s workforce, pay is something that your executive team needs to address. When people feel well compensated and cared for, they’ll reciprocate by putting 200% back into your company, bringing new ideas to the table and referring individuals from their network to accelerate hiring.
In other words, there are many hidden gains that come from higher pay. Take care of your team.
Trend #3: Quality of life matters
Everyone knows that life is exhausting, and the last thing that your organization needs is a workforce that feels financially strapped.
To live a balanced life, people need to be healthy, exercise often and spend time with friends and family. If your employees are worried about money, they’re going to spend their day’s stressed, unable to focus or scraping the figurative barrel for more money—just to get by.
Your employees’ bottom line is directly correlated with your organization’s bottom line. It’s hard to keep up with work when you can’t afford to meet your basic expenses.
Making the ultimate decision
One of the biggest challenges that Managers face when extending offers to jobseekers is lack of data. Check out the Modis 2015 Salary Guide to benchmark salaries for technical roles. We’ve even included salary adjusters for factors like company size and geography.