Money Talks in Every Aspect of Recruiting

Influencing candidates to apply for your job starts with addressing their biggest question mark. 98% of job seekers and employees say it is helpful to see salary ranges in job listings. Candidates experience a more positive search, and employers see a direct correlation with successful recruiting. According to Glassdoor:

• “Providing pay information at the beginning of the recruiting and inter view process helps candidates self-select out, reducing the number of resumes needed to get to hire in half.” (What Are Salary Estimates in Job Listings? April 2019)
• “Hiring decision-makers report when they hire informed candidates (about salary realities) they see better retention rates and more productive and more engaged employees.” (Glassdoor Survey, August 2017)

Time kills all deals, but as we venture deeper into low unemployment waters, I believe our shtick should change. Money kills all deals.

I can’t tell you how disruptive compensation is to the offer process. There’s tremendous value in discussing compensation with a candidate during every interview. If you approach the topic strategically, it will not be overkill. Here are reasons you should never miss an opportunity to talk about compensation:

Q: I have a very good, seasoned VP in claims who manages our largest claims, advocates for clients and impacts the agency’s brand by managing vendor and carrier relationships. I would not want to lose this employee. I’m concerned based on internal discussions that our agency may not be “at market” from a compensation standpoint. Can you provide guidance on how this could affect retention or future recruiting?

A: The impact of compensation on recruiting has been an evolving discussion since my career began in 2006. When I entered the industry, compensation was never brought up during screening, the referral or interviews. Because it was hush hush, offers were entirely predicated on the question, “What do you currently make?” Today, compensation is visible on job postings, shared in referrals, talked about in every interview and is phrased, “What is your compensation expectation?” You’re falling behind the times if you do not embrace and encourage compensation discussions. It is your best weapon in the fight for talent. It fights pay inequality. It attracts a diverse workforce. It retains your most valuable employees. Compensation should be a part of every aspect of your recruiting process.

Staffing forces us to focus on new things, but what’s the point of taking dirt from one hole just to fill another? Recruiting is an ongoing issue. You constantly have to re-recruit your own employees.

Mercer’s 2018/2019 U.S. Compensation Planning Survey said, “Companies risk losing employees to competitors that may offer better salaries and the opportunity for more career growth.” The survey found 78% of employees list Retention Concerns as their top factor that influences compensation decisions. This is higher than other categories like sourcing new talent and adding bench strength.

To prevent employees from becoming job seekers due to frustration with compensation, here are some tips to leverage compensation and increase retention.

• With Account Managers, focus on pay equity. While merit percentages are on the rise (3%+ according to SHRM 2019) people can get more in the open market. Organize, prioritize and incentivize client service managers based on book size, vertical/niche portfolio and segmentation of roles (marketing, client-facing responsibilities, etc.)
• Producers will gladly discuss new and renewal splits. In fact, they do in peer groups, so you want them talking with you. Invite salespeople into learning about ROI and expense management. Even newbies on a validation schedule should learn how formulas work. If not a yearly discussion, let life stages be the kick for you to discuss comp with your sales team. Producers change employers for better comp plans when they marry, have children, buy a house, pay for college and are within 15 years of retirement.