If you feel anxious or feel uncomfortable reading this post, you might want to review your beliefs about Money.
Also, you could sing this amazing song of Abba, Money, Money, Money.
In the following lines, it is my goal to express the relevance of being transparent regarding our expectations and capabilities about Money when we are going to hire someone, look for a job, or interview candidates.
Because yes, at some point we need to talk about Money. And being realistic, this is one of the first critical deal breakers.
So, in my opinion, the sooner, the better.
If you read me before, I believe that time is precious and is my intention to align conversations between hiring leaders, candidates, and recruiters.
And yes, I confess that I hate when a recruiter or hiring leader negotiates salary with candidates below what they are currently making.
To me, as an Executive Search Professional, that is a No No.
I hope after reading my blog, this also becomes one of your concerns if you are a hiring manager or recruiter or Executive Search Consultant, or Talent Acquisition Team (Gosh, how many names we use Lol)
If you are a recruiter and your client cannot afford the candidate you are presenting (forget it, then you do not have a candidate).
If you are a candidate, you should have a number in your mind (so, say it)
If you are a hiring leader, you already have a number in your mind because you have a budget. Simple as that. Say it!
So, here are my top recommendations in how to handle this critical conversation:
1.- Lose the fear of the number (It is what it is (At least by now) – This is one of my favorite rules).
– Candidate: It is what you need and you should make a move.
– Manager / Hiring Leader: It is the number that you can put in your payroll.
– Recruiter / Executive Search: It is the budget that your client has to offer.
2.- Do your numbers and decide.
This point is crucial for candidates and hiring managers (leaders).
I do not want to be too technical on this, but being realistic, you have a minimum and a maximum in your budget if you are a hiring leader.
Do not forget to review the compensation of your team and be fair. One of your missions is to balance equity and fairness.
So please do not pay more to external candidates and lose the internal balance.
Conduct a basic logic decision process, for example:
No experience – Minimum range of the budget
Basic experience – 25% of the budget
Intermediate experience – 50% of the budget
Advance Experience – 75% of the budget (Because you need to have room for salary increases). If you exhaust the number too fast, that person will have to live with the same salary for some time. And being honest, we love salary increases.
If you are going to use 100% of your budget, be transparent with the candidate, and say it, the scenery will be crystal clear. (The candidate won’t have a salary increase anytime soon unless hopefully your company soon breaks through the sales numbers and make more money).
3.- Promptly share your number.
So, yes, if you are a hiring manager, please tell your recruiter or Executive Search Consultant what the budget is.
If you are a recruiter, please post the salary offered.
If you are a candidate, you have a number in mind, say it.
(I said this initially, but believe me, it is crucial, which is why this paragraph won the number 3 in my mind).
4.- Forgot the market.
The market represents few companies and people who voluntarily share their data. So it is not always accurate.
I am a romantic person, but in terms of business, I am practical.
As Talent Finder, I receive all kinds of responses when I ask a candidate your ideal compensation?
I can feel the silence before the answer.
I can feel how they are talking and talking, looking to explain or justify.
The reality is that this is a number which is in our heads and budgets.
So, from now on, please just say it.
And of course, here comes the big question:
Why is there salary a filter?
The good news is that salary is a deal-breaker because we need to ensure that the opportunity is a win-win for candidates and companies.
Recruiters and Talent Acquisition Teams are in the middle to facilitate this type of conversation and make successful placements.
Money is an element that allows us to receive payment in return for our contribution and value-added services to the company that we work for.
And it does not represent our worthiness.
It is just an exchange.
Now, breathe! And lose the fear to talk about Money!
Well, I leave it here for now. Let me know your thoughts and how these suggestions can help you achieve your recruiting goals better.
At IP Living, we are here, committed to helping leaders and candidates to find each other and create successful workplaces!
If you want support on your adventure towards finding talent and/or a new home, you know where to find us!
Managing Partner HR Business Solutions
Talent Acquisition Lead, Talent Passionate, and Coach.