Setting a salary range shouldn’t feel like a guessing game. But if you’re new in your position, or if you don’t have a sound process, that’s exactly what it can feel like.
On the one hand, you want to attract the best talent and pay those individuals fairly. On the other hand, you can’t afford to pay more than a job is worth to your company. So to set the right salary range for your available position, consider the following questions:
How much more valuable will this person make my company?
This question is relatively easy to quantify for positions like sales and business development. Individuals in these jobs generate revenue, and you can easily determine if the sales they’re likely to generate will cover their salaries.
But what about support positions like administrative assistants or IT help desk technicians? Undeniably, people in these jobs are extremely valuable to your organization. The challenge is determining exactly how much they’re worth. To estimate their value, consider:
- how much money they can save your company;
- how much it costs to not have them on board (i.e., vacancy costs);
- how much their support frees other professionals to accomplish their most important tasks.
Quantifying a job’s value to your organization will help you determine the top end of your salary range.
What does the market dictate?
This is where doing your homework will pay off:
- Consult relevant salary surveys. With a little searching, you can easily find up-to-date salary information relevant to your available position and geographic area. The Connecticut Department of Labor has employment and wage data online; you can use this as a starting point.
- Know what other businesses are paying. Ask non-competing business colleagues to share their market rate experiences. Contact your local chamber of commerce or business networking group to garner additional salary range data.
- Consider talent market conditions. How plentiful are qualified candidates? Obviously, the tighter the market, the higher you’ll need to pay to attract good people.
Use a combination of what the job is worth to you and what the market dictates to set an acceptable salary range.
Need help with the process?
Call the employment experts at A.R. Mazzotta. When you use our recruiting services for direct hire, we assist you with every step of the placement process – from sourcing Connecticut’s top talent through salary negotiations. We’ll help ensure you find the right person, offer the right salary and ultimately make a great hire.