If you manage a financial team, you need to take a closer look at your compensation packages. The U.S. Bureau of Labor Statistics (BLS) continues to show a shortage of skilled candidates in the job market, so you have competition in hiring.
Check out whether the unemployment for finance and accounting professionals is lower than the national unemployment rate. For the third quarter of 2016, the BLS report shows these accounting and finance roles with the highest hiring demand and lowest unemployment rates:
- Budget analysts, 0.5 percent
- Compliance officers, 1.0 percent
- Billing and posting clerks, 1.4 percent
- Financial managers, 1.8 percent
- Accountants and auditors, 2.4 percent
- Financial analysts, 2.9 percent
These figures, along with the increase in job creation, help to underscore the hiring challenges ahead for managers like you. Candidates may pass over your job listing or your offer if they can get a better compensation package elsewhere.
If you expect to hire the best and brightest, it’s essential your company’s salary levels are equal to or exceed those of your competitors. So where do you begin? Here are nine tips for developing a solid compensation package:
1. Stay salary-savvy
Take this opportunity to research and update salary ranges so they reflect current market trends. Make sure your compensation package is line with competitors so they aren’t wooing away your top talent. But also be careful not to exceed the salary range you set. Employees could become disgruntled if they learn a new hire is making significantly more than those who have put in years at the company.
2. Stay benefits-savvy, too
An attractive compensation package includes such ingredients as bonuses, 401K matching contributions, health and life insurance, and other benefits, like reimbursement for continuing education. These are important to job candidates, because they offset how much employees can expect to pay out of pocket for healthcare and saving for retirement. For some, especially those supporting a family, the benefits your company offers could be the deciding factor.
3. Don’t wait too long to increase compensation
Your compensation package should evolve with your employees to maintain a fair and equitable environment across your staff. It’s not something that should be looked at only when a new employee comes on board. Embrace a philosophy that provides a clear metric for raises and bonuses that are tied to qualitative goals.
4. Communicate your strategy
A documented employee compensation strategy will provide consistency for employees and also inform managers, who are on the front line of receiving questions about pay decisions. You’ll be glad to have an up-to-date reference when you face your next job opening — or an employee asking for a raise. While individual salaries remain private, you want your employees to understand there is logic and fairness to your system.
5. Be prepared
Expect candidates to want to talk money — after all, it’s their livelihood. Know what you’re able to pay, and how flexible you can be, before you start interviewing potential employees. That will save time for both of you if you can’t come to a mutually agreeable compensation package. If someone seems hesitant to accept a job offer despite your willingness to negotiate, it may be time to step back.
6. Play ball
Job candidates typically have the upper hand today when it comes to the hiring market. Be ready to offer additional perks to supplement what you can pay. The promise of a healthy work-life balance with flexible hours and more vacation time, gym memberships, opportunities for advancement and a well-stocked kitchen, for example, might seal the deal, especially if the candidates know such a compensation package can’t be replicated with another employer.
7. Be willing to negotiate
Entering the discussion knowing your limits not only will make it easier for you but will show a job candidate you have a consistent and objective process in place for employee compensation that will ensure fair treatment in the future. At the same time, be flexible within your limits to account for an individual’s experience, education and potential. For more on this, read Master the Art of Salary Negotiation, Then Make an Offer.
8. Don’t drag your feet
You don’t want to be reckless, but you want to act quickly. Candidates often receive multiple job offers, and according to a Robert Half survey, 39 percent of them will abandon a hiring process that drags on too long.
9. Know when to call it
Don’t get so carried away with negotiating that you lose sight of your company’s needs — and budget. How easy or difficult will it be to fill this particular position? How essential is the position to your company’s mission? Sometimes you have to let a great candidate go. But do so in a respectful manner. You never know when you might cross paths again in the future.
An attractive compensation package is key to recruiting finance and accounting employees with in-demand skills. But what’s competitive today isn’t competitive forever. Employee compensation needs to be continually revisited so you’re not seeing your top performers hired away.
Looking to hire top talent in finance and accounting for your organization? We can help.