The Pitfalls of Presenting the Salary Range
When I say to you the temperature today is expected to reach 18 to 24 degrees, what do you think of? I bet most of you had a vision of a balmy 24 degrees. The figure 18 was dismissed as fast as you can say twenty-four.
So it goes when having preliminary discussions and first interviews with candidates. If we tell a candidate the position pays between “75 to 85 thousand dollars”, selective hearing kicks in. The candidate hears “this position pays 85 thousand dollars” reinforced by the followed thought “I think I am worth 85 thousand”.
The interview process determines where a candidate fits. What the candidate does not see is how they are being measured not only for their fit for the position but also against others in similar or bordering roles. You may determine that a candidate compares quite favorably to others at the lower end of the scale and would be a great addition to your team. If during the interview and in the spirit of honesty, the above salary range parameters was disclosed, there is a high probability that presenting a 75K offer will be met with hard feelings, distrust and possibly lead to the withdrawl of the candidate.
So what do we do; Not mention the salary range? Only mention the lower end of the range? Leave a buffer for negotiation? There is merit to each of these tactics and sometimes disclosing the full salary range is a required tactic. Ideally however, the salary range is not disclosed until an offer is tabled. Through discussion and through out the screening process we develop the understanding with the candidate that their salary expectations can be met. To do this you need to know what the candidate is making and what their true salary expectations are to consider making a move.
The interviewing process is time consuming for the candidate as well as the company. The candidate’s fear of being low-balled after going through a full interview process can be understood. Understanding your candidates’ motivations around money and why he or she is looking is essential.
This is also one of the areas you can benefit from an experienced Search Consultant. You can get the background information, motivation for making a move and salary range on a candidate as you start the process. You are not immediately pinning yourself to the top of your range. You may find that person is presently just below the high end of your range but you also know that before agreeing to take that person to the first interview.
Managing candidate salary expectations is an area that greatly benefits from experience. As you interview more and work through different scenarios, you will build up different methods to keep candidates motivated throughout the process without dangling money. You can avoid the traps we ourselves can add to the process.
David Street, Senior Consultant, June 2009
We invite your comments to street@Derhak.com, or call (416) 675-7600.
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