Money
"You get what you pay for" the saying goes. "Pay peanuts... get monkeys." another declares. Both of these statements are right, especially when it comes to salaries and the quality of employees. But these can be misleading, and in another way they are wrong.
More often than not salary ranges are set below the imagined qualitative merit of the job function. Objective, job function criteria are too seldom aligned with the funds available for compensation. Often employers set out wish lists of qualifications on positions whose functions don't require those qualifications. They then budget or set a salary more in line with the function of the job. Since the kind of candidate wished for is not available for the money they have budgeted and comes nowhere near the money needed to hire the desired type of individual, the position goes unfilled. The search for the right candidate goes on too long, wastes time, and eventually either the standards are lowered or more money is found.
What’s It Worth?
To keep this from happening, we recommend that the minimum attributes for the function of job be assessed. These functions then dictate how much the job is worth, in dollars, based on supply and demand in the market. The value of the job then is based on necessary functions in line with supply and demand. The salary paid will initially be dictated by the necessary functions of the job and not a wish list. Don't be afraid to lower the functions of the position if the money available is not sufficient to hire all of what is needed. Be careful not to invent functions of the position because more money might be available. Overhiring is a mistake. Base what you hire on the function of the job. Don't be tempted to buy more talent than the job demands.
Another way of being sure that you get what you pay for is to be sure that you interview candidates on both ends of the salary scale. Often when the range is $75000 to $80000, only candidates at the high end are considered. We recommend being sure that candidates on the low end of the scale be interviewed and considered, even at $73000 or $75000. More is not always better. From an objective qualifications point of view, the difference in ability between $70000 and $75000 cannot be proven. There might be candidates available that we like better subjectively at the $70000 range but the only difference between most candidates functioning in a job at $75000 and $80000, respectively, is really just $5000. We are trying to say, skill-wise and experience-wise, the extra $5000 isn't going to get a $5000 better person. Now, we might justify paying the $5000 more by rationalizing that we are getting a better person, but it really just comes down to us "liking" the person better. How, in positions other than sales, can one person be $5000 better than another? Interview many candidates at all levels of the salary range. Not only does one become familiar with all the talent on the market, one can likely save money and still get the best talent available.
Our Function
One of the many functions of our service is to provide qualified candidates on all levels of the earnings spectrum. It is our obligation to show candidates on the low and high end of the earnings range. We often save our clients not only large amounts in starting salaries, but these differences in starting salaries extrapolated over four or five years add up to substantial savings. Compromising quality in a candidate for the savings of $5000 or $6000 just isn't likely. Careful interviewing can produce a quality employee and save money, as well.
Getting what you pay for when hiring people can be very misleading. The salary must be commensurate with the functional level of the job. To pay a $100,000 salary for a senior secretary position doesn't mean you are going to get a better secretary. The job is worth just so much.
The Job… Its Value
Any job, even a commission-driven sales job, is only objectively worth so much no matter who functions in the job. When the value paid exceeds the functional value, the formula is out of balance. This country's predicament with the quality of imported goods (cars, electronics etc.) and their cost compared to the same American-made goods and their cost is an obvious example of this loss of balance.
Getting what you pay for in hiring isn't hard to do. Analyze the function of the job. Get professional consultation on the value of the function of the job and set the salary range. Interview candidates on all ends of the salary spectrum. Get what you pay for!
