Why Using Outdated Salary Data Negatively Affects the Recruitment Process
One of the most important tasks of an organization’s planning is setting up a compensation strategy that is not only competitive, but also helps drive employee engagement. Solid comp programs, after all, are a must for recruiting and retaining top performers.
But whether the plan is devised by recruitment firms, internal talent acquisition teams or both working together, compensation in too many cases is based on outdated, unreliable data – or even on salary data from candidates who were previously placed in the identical role.
Relying on salary data from previously placed candidates or survey data sources fails to factor in a city’s unique employment conditions or the supply of candidates with the specific skills and experience. A market's economic performance and occupational changes can significantly shift compensation demands. A blind spot in this area will inevitably delay and prolong the recruitment process, costing time and money.
A better way is offered by LaborIQ® by ThinkWhy, a cutting-edge software tool that bases its compensation answers in real time on a location’s talent supply, employment conditions, company size and industry. LaborIQ ensures salary answers that are unbiased and above all speedy – the Holy Grail for compensation planning.
Validated, Real-time Compensation Data
Because compensation depends on a variety of factors that can change quickly, a salary level that was offered to a new employee even two months ago risks being out of sync with current job conditions. So, recruiters and talent acquisition professionals who determine their offers based on historical hiring could be suggesting salaries that no longer align with what competitors are currently offering. All of which delay the recruitment process and hiring and may result in hiring managers losing top talent to their business rivals.
In contrast to this method -- and to other compensation surveys that rely on crowdsourced or otherwise unverified data -- LaborIQ provides compensation answers that have been validated against 18 trillion data points to ensure accuracy. Through a proprietary data science model, called ATILA™ Technology, the tool filters market compensation not only for the likes of industry, company size, experience and education, but it also factors in the difficulty of filling the role in a particular market. Is there a surplus of talent for the position in the city, or is there a shortage? Both affect compensation demands.
With specific information in hand about a role’s true market value, talent acquisition professionals can feel confident offering a higher salary to win over a desired candidate. They can also deliver value for their clients by:
- Updating old salary ranges. If the client hasn’t hired for a particular role in several years or performed annual salary reviews, they’ll now have current information.
- Revamping an existing role. For positions now requiring more education, additional certifications or some other change, clients will gain visibility into salary adjustments that may be necessary to lure the best candidates.
With offers based on validated, real-time compensation data, job prospects will feel valued and be more inclined to seriously consider or accept the offered position. That’s the definition of a win-win-win.
LaborIQ by ThinkWhy continuously monitors and forecasts labor data at all levels, measuring impact to cities, industries, occupations and business across the U.S.