What's the best way to offer fair compensation to candidates?

The best way to offer fair compensation to candidates is by conducting thorough market research, evaluating the role's responsibilities, maintaining internal equity, and considering the candidate's qualifications and experience.

Whenever recruiting for a specific role you should be aware about the current market rate for that role and in line with that understand candidate's expectations then only you can offer a fair compensation to the candidate.

One of the way to offer a fair compensation to candidate is to have "Salary Benchmarking" against each role and level. This will help to have a broader view of the industries standard payout matrix and you will be competitive enough to retain your employee.

To provide equitable compensation to candidates, it's crucial to strike a balance between offering competitive pay and recognizing the candidate's worth. This means considering the candidate's potential contributions while staying within budget constraints. Effective compensation also entails keeping an open line of communication, being transparent about company expectations, and being willing to adapt to the candidate's needs. Ultimately, it's about creating a win-win situation where the candidate feels fairly rewarded for their work.

I believe, its a 2 way street...some points to consider: -ROI for both the candidate as well as the company -Skills/competence the company is truly buying from the candidate in return for a fair price -Capability the company is building for the future -Niche skillset v/s General skillset Many factors would go in..and its always a new way to find the correct mix.

Assessing a candidate's skills and experience is like fitting puzzle pieces together. It's about finding the perfect match for the role. Using interviews, tests, and references is like examining each piece closely. It's not just about what's on paper, but also about their potential to excel and grow with us. This thorough assessment ensures we make an offer that's not just fair, but truly reflective of their value to the team.

I feel the first thing to do in offering a fair pay is understand the expectations of the candidate. From there, I like to use an automated tool that calculates a MIN, MID, and MAX for the role and add in the candidate's relevant experience to see where they fall within the pay scale. If we can meet their expectation, great! If not, I look for additional opportunities such as doing an internal equity match AND I always ensure our pay scales align with our current employees too.

I don't agree with Jarrett Kelley's approach to using automated tools to evaluate a candidate’s skills & experience, maybe it depends on the job spec/technical requirements? The technical manager and team should be in complete control of assessing the skills/Ex. A strong approach to this is to propose a case study/real challenge the team faced in the past. This will quickly determine the persons suitability for the opportunity. Identifying any other gaps that need to be bridged can be done via an interview with the technical team. In my opinion this should be evaluated over a consistent three-stage interview process. Maybe further stages if the opportunity is at a Chief or C-level.

Yes, the idea of communicating your compensation philosophy is indeed important. However, to enhance this message, you could consider adding a few more elements: -Explain how your compensation philosophy positions your organization in the job market. -Highlight that compensation goes beyond just base salary and includes elements like bonuses, benefits, stock options, and professional development opportunities. -Emphasize how your compensation philosophy ties rewards to individual and organizational performance. -Mention if your organization considers the long-term value of employees. Are there provisions for salary increases, promotions, or equity participation based on tenure and contributions over time?

Offer full transparency around the salary. It’s the best way to close the gender gap and build a culture of trust and openness.

Disclosing the candidate about the bonus and the allowances which they will be entitled to, with full transparency of when and how will they be entitled to it in line with the company policy.

Being transparent about our compensation philosophy is about building trust from the start. It's a reflection of our commitment to fairness and open communication. By explaining the rationale behind our offer, we aim to show candidates that their value is recognized and respected. This approach sets the tone for a positive and collaborative journey ahead.

In the interest of candidate experience and company image, compensation must be made transparent from the application stage of the process. Especially considering there is a ‘taboo’ around discussing salary during the interview process. However, I don’t believe including the salary band on a job ad is beneficial as this has potential to discourage quality applicants. Ultimately, any offer should fairly mirror the candidates’ skills & experience, this should be clearly communicated as to why they were offered on the lower or higher end of the salary band.

I have experience recruiting in US and Middle East the main point of negotiation depends on the candidate's expectations which can either be monetary or non-monetary and when a recruiter understands that gap then they can successfully meet the expectations of the client and the candidate and negotiate with respect and flexibility.

"In my experience, negotiations are key. Depending on the skills and experience of each candidate, they also allow opportunities for the candidate to determine how much they are willing to give to the company in terms of hours in exchange for pay. Some might opt for less pay but have a better work-life balance, while others might choose the opposite, working overtime and even taking on more roles for higher pay. This is usually a win-win for both the employee and employer, as both parties get what they really want."

Welcome presentations from candidates as to why a variance or exception to the posted pay band should be reconsidered. One could create a window of time to challenge what rate was offered. Otherwise, it would be presumed that the pay offered was fair and will track within other applicable compensation rules adhered to for the job and classification.

Negotiation is a two-way street, and it's crucial to approach it with respect and understanding. We value the candidate's input and are open to finding a mutually beneficial arrangement. Flexibility allows us to consider various aspects of compensation, ensuring the candidate feels valued and supported in their new role. This process is about collaboration and setting the foundation for a successful partnership.

I LOVE to negotiate! however, it's not for everybody. If you don’t have the support of a recruiter, then take into consideration the candidates salary expectations and motivations when constructing a package. Then you'll be well positioned to make an attractive offer. Expect negotiation and be adaptable, this does not have to be monetary as long as you have something to get the offer across the line: visa support, relocation package or even an early salary review. From the candidate’s side, they should be prepared with a business case to galvanise their reason for negotiation. Either way this should be un-emotive and respectful, this is a transaction that needs to be advantageous to both parties.

Having recruited extensively in both the USA and LATAM, one thing I've learned is the importance of offering variable compensation structures. In addition to a competitive base salary, consider performance-based bonuses, stock options, or other incentives that align with the candidate's role and the company's goals. This approach not only attracts top talent but also ensures that high-performing individuals are rewarded accordingly. It's a win-win strategy that speaks to candidates' ambitions and the company's success

Following up with a written offer is a crucial step in our commitment to transparency and professionalism. It provides clarity on all aspects of the offer, ensuring both parties are on the same page. This process safeguards against any potential miscommunications and sets the foundation for a successful working relationship.

Offering fair compensation to candidates is crucial to attract and retain top talent. To ensure your compensation packages are competitive and equitable, consider the following best practices: --Invest in compensation management software or tools that can provide real-time data on market salaries. These tools can help you make data-driven decisions and maintain pay equity. -Adjust compensation based on the cost of living in the candidate's location. Candidates in high-cost areas may require higher salaries to maintain their standard of living. -Ensure that your compensation practices are free from gender, race, or other biases. Regularly audit your pay scales to identify and rectify any disparities.Keep up with labor laws and regulations

To offer fair compensation to candidates, conduct thorough market research to understand industry standards for the specific role and location. Consider the candidate's experience, skills, and the company's budget. Transparently communicate the salary range early in the hiring process and be open to negotiation, ensuring fairness and alignment with both company and candidate expectations.