I have been trying to expand the department I am a manager of over the last year. As a company we have had some rapid growth and we have also taken over some companies. I have had a much harder time than in the past filling these. I have been turned down more then normal, all applicants have sited pay. I offered more then they have made in the past, and some have been out of work for over a year. In many cases i have offered more then they put they are looking for and more then the average for the area for the position. All off the applicants sound excited about the job and seam to really enjoy the tour of what they will be doing. Is there an easy way to find out if pay is really the issue?
Some have come back and said they talked to there professor about the offer and they told them they should be making much more. We are in a down economy, if most places are laying people off, giving pay cuts, and taking away benefits. Would it be in proper to contact the two professors in question that I have had multiple applicants tell me they said this?
I had a potential team member that graduated in May 2009 turn down the job because he thought he should be making $1,000 more a year, yet with benefits (profit sharing 401k, etc) he was making much more then this. Has any one run into this issue? Have you found an effective way to communicate this?
Are You Competitive?
You've mentioned you pay more than the "area average", but is that a competitve or appropriate measurement? For example, in my area, the average admin. assistant in my industry is earning about $13.00 per hour. (Minimum wage is $10.00) If we pay $14.00/hr, that is more than the average but isn't necessarily a competitve wage. The candidate could change industries and make $17/hr.
When was the last time you did a compensation analysis? If all your candidates are citing pay as a reason to decline it could be that you are at the low end? Or, it could be a case of inflated expectations, I know my profs had us all dreaming of minimum starting salaries that make me blush now.
As far as the candidate who declined over $1,000, sounds like someone who didn't want to tell you the real reason for the rejection. $1,000 = 50 cents/hour (at 40 hrs/week). That makes quite a difference to the candidate if you are making $13.00/hr, not so much if you are making $50K/year. (But, I've had management quibble over far less than 50 cents when asking to give a DR a pay raise, so maybe it does make a difference at every level.)
I would consider approaching the professor, not about the pay rates, but if there are other issues in play.
As a final thought, we lost several staff members when a new industry developed & paid substantially more per hour. The employee's risk was frequent lay-off and zero job security, little to no benefits and a more dangerous work environment. The effect was our pay rates, that were above average previously had to rise substantially to attract replacements. It could be there's a new player in your market.
What you asking for the job?
I have heard that if is very specialized job people trend to ask for more money so the enterprise doesnt think you are cheap and then they take advantage of them.
But i think is like ACAO162 said, money was not the primary reason to not take the job; but many times when people is just leaving school think is very easy to get much money and do so little. Then we reject jobs and then is so hard to get a great opportunity. Id love know to have a better job and is so hard to find
Live by the sword...
Ah, money...
The market for good people is always tight.
If you want to attract candidates, you have to offer something unique. Offering lots of cash works, although you tend to attract people who are interested primarily in cash. They'll leave for a better offer. And you'll have complaints every time you do a performance review.
What you want are people who are excited about the work you're doing. People who see that your team is unique, doing great work, and fun. Yes, you have to pay a competitive wage. But if they're rejecting your offer for a measly $1,000 then your offer, overall, lacks appeal. If someone who's been unemployed for a year is rejecting your offer, and you're offer is close to market rates, then something else is wrong.
Programmers at Apple are paid less than programmers at investment banks in New York. Do you think Apple is trying to compete for talent with dollars? Apple can attract candidates by paying fair wages, and offering the opportunity to work on great, innovative products.
So ask yourself this:
- Do you radiate excitement about your team when you interview candidates?
- Do you convey what makes your team special?
- Does your firm has a good reputation?
It's hard to know since we don't know your firm. Regardless, you need to compete on all aspects of the offer, not just the dollars.
John Hack
You are making a big assumption
You are assuming the problem is on the end of those being recruited. Maybe the problem is on the front end, with your job description and recruiting process. Maybe you are not getting the right fit because you are not attracting or screening for the right fit.
From someone who has
From someone who has intereviewed a lot, I will tell you why I have declined job offers:
1) Working conditions - If there are boxes stacked all over the place, the office is outdated or I will be working in a bull pen, I will always say no.
2) Do I like you? It goes both ways and if I dont like you, then I dont want to work with you.
3) Salary - I can tolerate a lot with the right salary.
4) What kind of vibes do I get from other emplyees that currently work there? I can smell moral problems. I wouldnt touch that job with a ten foot pole.
5) Benefits - If the salary is good but the insurance is not good, or benefits are not good, I will look elsewhere.
It sounds to me like you have several issues going on. If a person is declining your job offer over $1,000 a year, then there is something else going on. I think the only way to find an honest answer is to use a recruiting company. I will speak more honestly with a recruiter than I will the company. The recruiter can then tell you the reasons.
Look at the Position & the Candidate
I agree with John and Jose, I think you should look at the position you are hiring and your candidate pool- something is not adding here as the best candidate for most executive positions look at money as the last element in the equation of working with your team. If you are confident that your compensation is competitive and clearly described in the interview process then you may want to consider changing your candidate pool or how the position is described (you mentioned that the tour seems positive).
With the recession is it possible that your candidate are attempting to make up for lost time and wages or filling the gap for a spouse or partner who is underemployed? If so you may need to stress increasing compensation over time or offer a early retainer bonus contingent on 1st quarter performance to insure you are meeting your candidate needs responsibly.