💸 DEAR COMPANIES: PSA on why you shouldn’t low-ball a candidate in today’s market! Brought to you by the experts at Prospex Recruiting, dedicated to connecting your company with the perfect talent.
Why Low-Balling Candidates Can Backfire
💰 The candidate may accept, but they will be easily lured away by a higher compensation package. Even if they are happy in their role, money talks.
💰 A low offer may make the candidate feel undervalued from the start, leading to higher turnover.
💰 They may not deliver their best work due to feeling underappreciated.
💰 Your company’s reputation can take a hit. If employees feel undervalued, word spreads, damaging your ability to attract top talent.
💰 Interview time can be wasted with rejected offers. Even if an offer is accepted, candidates may continue interviewing with companies offering better compensation. If you know you can’t meet their expectations, it’s better to be upfront and avoid prolonging the process.
Strategies for Budget-Conscious Companies
If your company is cash-strapped or benefits are less competitive, consider adjusting expectations to attract high-potential talent. While they may not have the full “turn-key” experience, they can grow into the role while feeling valued and challenged.
Money isn’t everything, and some candidates are willing to take a pay decrease under the right circumstances. However, it’s crucial to set clear expectations early in the process. A low offer at the end of the process, when expectations haven’t been met, can leave a sour impression.
Creative Compensation Solutions
Occasionally, offering slightly lower pay can work if measurable, objective milestones are built into the offer. For example, after three months of meeting specific goals, compensation can be increased to their desired level. While this approach won’t work for every company or situation, it can be effective in certain cases.
How We Handle Compensation at Prospex Recruiting
At Prospex Recruiting, we ensure the compensation process runs smoothly. Before sending a candidate to a company, we align on their total compensation expectations (base, bonus, equity, insurance premiums, and other benefits). Throughout the process, we confirm these expectations to avoid any surprises and ensure both parties are on the same page.
We’d love to hear about your experiences, whether as a candidate or a company! Contact our team today to discover how we can support your hiring needs.
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