Sitting directly across from you at the offer table is your anxious candidate awaiting the release of your proposed salary. You have prepared your offer based upon the salary scale provided by your company. Also, you have combined several factors regarding this candidate including; salary history, education, experience and what they can bring to the opened position.
The candidate has done their research by utilizing free online salary surveys, and has familiarized themselves with the going pay rate for this job, so what if your offer comes back denied? Well, there is always a chance of that happening. In fact, this candidate counter offered with a $10k difference. So what gives? What is the meaning of all this?
If your company isn't already using salary surveys, they should be. Salary surveys are a great way to keep an eye on the going rates for positions within your industry and within your region. The question is, which source is reliable? And how much weight should be placed on these resources?
Well, there are many big players out in the industry, some are more pricey than others. And they vary with data reliability. Most survey companies offer access to these surveys upon your subscription to their services and / or survey participation.
I have listed the most reliable resources and listed them from lowest to highest upfront costs:
O*NET OnLine has detailed descriptions of the world of work for use by job seekers, workforce development and HR professionals, students, researchers, and more!
The Bureau of Labor Statistics of the U.S. Department of Labor is the principal Federal agency responsible for measuring labor market activity, working conditions, and price changes in the economy. Its mission is to collect, analyze, and disseminate essential economic information to support public and private decision-making. As an independent statistical agency, BLS serves its diverse user communities by providing products and services that are objective, timely, accurate, and relevant.
- Glassdoor.com - is your free inside look at salary details for any company or job - including average salary, bonus, and total pay. All salaries posted anonymously by employees.
Salary.com is a leading provider of on-demand human resources software that help businesses and individuals manage pay and performance. We help employers and employees achieve greater results in the workplace.
ERI compiles the most robust job competency, cost-of-living, executive compensation and salary surveys (over 565,000 organizations' data) available.
- Local Industrial Membership Organizations - Through your annual membership, many of these organizations provide local salary survey opportunities and data.
PayScale MarketRate is a cost effective and easy to use compensation benchmarking solution designed for HR professionals, hiring managers, recruiters as well as business leaders for small- and medium-sized businesses.
- Private Compensation Firm - Depending on your location, you may be able to locate a local firm who specializes in Compensation design and models. They will be familiar with your industry and demographics in order to provide accurate salary data to you.
Remember, salary surveys should be used as a tool to monitor the market and gauge your competitiveness. They are incredible guides to providing a starting point for your salary ranges. A great idea is to utilize as many tools as possible in order to average out the data.
You would be wise to stay away from firms and surveys who do not render their sources of information. Many outfits will allow anyone to participate, including individuals who randomly fudge their salary history. Those can be easily identified and discarded.
So, the next time you sit down at the offer table, be prepared. Your candidate will most likely have a general idea of what they are worth within their market, shouldn't you?
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