How is pay for a new hire determined?
There are a number of ways to reach a salary figure, and all of them differ greatly. Common thought tells us that if the candidate accepts the offer, then the work is done. And that, analytically, is true. But you want to make sure that the salary is enough of a motivator for the candidate once they’re inside the office. Also, during the suitor phase, you want to ensure that your offer is lucrative enough to lure the candidate in.
So what makes a good offer? Sometimes as important as the offer itself, is how the offer is reached. No candidate will be willing to take the lower portion of a salary range. In fact, they nearly always go for the upper part. Depending on what you’re expecting to pay for the perfect candidate, you should assess what the upper part of your salary offer truly represents.
Whether you’re looking to underpay, overpay or pay market value, the talent you hire will often be indicative of the salary you offered.