Hiring software engineers has become increasingly difficult this year, particularly in New York. If you’re like many of the startups we’ve worked with, there seems to be a widening divergence in hiring-manager target pay and candidate expectations, leaving both recruiters and startup leaders wondering how to respond. Should you raise pay to compete with major tech firms? By how much? What about internal equity for the employees already at the company?
Over the past two months, my company Kolmeta has been growing exponentially. So much so that I’ve decided to go all in on entrepreneurship and focus solely on moving this company forward. If you want to read more about my departure from the corporate world, you can here. But that’s not what I want to focus on as it relates to this transition. What’s important now is that I’m truly putting my money where my mouth when it comes to this extreme experiment in salary transparency. And there is no better or more authentic time to share what’s behind the curtain than right now.
Job hunting isn’t what it used to be. Technology has transformed the process from painstakingly walking door-to-door handing out printed resumes to applying for positions with a simple click of the button. It’s only a matter of time before technology revamps the uncomfortable task of salary negotiation.
The traditional employer-employee power dynamic is in a state of transition. With access to real-time information, stories, and anecdotes, employees today expect their companies to be more transparent.
In last week’s companion article “The Top 5 No Cost Sourcing Approaches — And Each Is Guaranteed To Work,” I covered the five best no-cost approaches for finding top candidates. However, in today’s highly competitive job marketplace, even if you find top candidates those with multiple job choices will be extremely hard to land. So, if you are also having difficulty in the areas of selling and closing top candidates and you don’t have the resources to pay well, use the effective candidate selling approaches outlined below. All are intuitive, easy to understand, and because they produce great results, you won’t break your salary budget.
According to Aon’s 2017 U.S. salary increase survey, more than two-thirds of employers were taking some kind of action to increase merit pay differentiation, with 40% reducing or eliminating increases for lesser performers. This suggests that spreading pay raises across the board, like peanut butter on toast, has become an outdated practice.
Here at PayScale, we conduct ongoing research to understand the complicated relationship between compensation, how people feel about their salary and the many other factors that impact employee satisfaction.