Currently the tech industry’s unemployment rate is at a staggering 1.9%, down 3% from last year. To remain relevant in such a full-employment market, companies must make extremely attractive offers. Talented IT professionals who are seeking new opportunities frequently face multiple offers, and whether you like it or not, the decision often comes down to the dollar. Developing a comprehensive offer will be the make-or-break factor in a competitive hiring strategy. If you’re looking to make an offer the candidate can’t refuse, keep these guidelines in mind.
The pool of available IT talent is rapidly shrinking. The labor-market is tightening, as demand for talent outpaces the supply of qualified applicants. With so much movement in the talent market, companies are getting nervous, with 14% of executives seeing an increase in the number of counteroffers extended by their company in the last six months. If your hiring process is too slow, it’s highly likely your top candidates will choose another offer – whether it’s with their current employer or a competitor.
Any pause in contact can make candidates feel uneasy and affect their perception of an organization right off the bat. In fact, nearly half of all candidates will lose interest if there’s no feedback after 1-2 weeks. Naturally, delays do sometimes occur, but providing consistent feedback and updates throughout the hiring process lays the groundwork for a strong working relationship. On the flipside, losing communication at any point can be the deciding factor for a candidate to pursue another opportunity.
Know Your Competition
Staying on top of salary market research can be difficult, even for the most experienced hiring manager. There are constant fluctuations in the industry which can make the process lengthy and frustrating. That being said, in order to remain relevant with top candidates, staying competitive with your compensation is critical. With initiatives like the salary history ban coming into play, researching market rates is more important than ever before when constructing a competitive hiring salary.
There are plenty of valuable resources when searching for detailed salary information, such as our IT, Creative, and Engineering Salary History Guide for 2018. Other references include the Occupational Outlook Handbook, compiled by the Bureau of Labor Statistics, and PayScale, a website that has compiled over 54 million self-reported salaries. At the end of the day, however, understand that each company is unique; from your industry, region, and size to your bonus programs, perks, and benefits, there are a hundred factors that impact your compensation structure. Do the research, be smart, and recognize that a few thousand dollars over-budget may be insignificant compared to the value of a truly talented individual.
Position the Job
In 2018, one-third of IT professionals plan to seek new jobs due to dissatisfaction with their current role. Unsurprisingly, the main driving force is compensation. Aside from that, a few of the top reasons that they’re seeking new employment are to advance their IT skills, find a better work-life balance, and get better benefits. As this influx of IT talent re-enters the market, playing up the intangible benefits that you offer can help make your company stand apart. Whether it’s your flexible work schedules, remote work opportunities, or bonus programs, be sure to emphasize any unique employee perks.
Also, be sure to touch on the potential growth opportunities that your organization has to offer. Every candidate is on a different point in their career arc with unique goals for their future. Get to know their aspirations and explain how working with your organization will be an exceptional addition to their path towards career success. By selling your candidates on the role and organization opposed to the salary, you’re more likely to stand out against other offers they may receive.
How to Make an Offer the Candidate Can’t Refuse
By curating a plan for future job offers, you can more effectively capture talent and remain ahead of the competition. Putting forethought and planning into attracting candidates makes for a smooth and enjoyable recruiting process for both parties. These guidelines may sound simple, but the end result will be an offer that the candidate can’t refuse.
Having trouble attracting talent in this competitive candidate market? We’re here to help.