Let’s talk compensation! Compensation is key in a competitive job market. To most people, compensation means just salary. In a competitive job market like Seattle, salaries in some fields just seem to go up and up. Some of the big tech players can offer salaries that that smaller startups cannot. However! Compensation is not just about salary. A big salary with a 60-hour work week might not be equivalent to a smaller salary with flexible work hours, great benefits and an equity stake in the company. In this job market, candidates and employers alike need to be equipped with knowledge before discussing compensation.
Here’s a quick example. A senior software developer, just a few years ago, would pull in a salary between $120-$140K. Today, that same position might command between $160-$200K. It’s a supply and demand problem: not enough qualified people for the number of positions available. For recent college grads with computer science degrees, it’s a crazy world. Big companies who can afford comprehensive recruitment programs can snatch up top candidates before they ever hit the market. These grads might be unaware of opportunities with smaller companies that might be a better fit. Also, the market is changing constantly. The salary an employer paid one employee last year might be different than the one offered to a new recruit: the market changes constantly, but this creates a problem of equality within an organization.
There is a flipside to the high paying roles – we often see an exodus from roles after certain vesting periods – employees who are ready to leave big employers after reaching a certain level of stock gains. They are looking for a new experience – greater agency, more responsibility, less of the “cog in the machine” feeling. They have achieved significant financial gain but with a stifled amount of professional growth. A startup mentality might be a welcome change. But often they don’t know how to get started.
Here’s where experts like TalentReach can help employers and candidates alike. We are experts on current market conditions for certain positions, and can advise both on what salary to offer or request. We can also negotiate a bit in advance, saving time and effort on both sides, to make sure no one is wasting their time in an interview that has no realistic chance of employment at the end. We take the time to find out what matters to a candidate – things like flexibility of hours, benefits, titles, equity stakes and ability to make a difference in an organization often outweigh pure salary requirements. Our best day is when we match the right employer with the right employee – a great fit on both sides. We are best equipped with the knowledge to get the right candidates the right compensation at the right employers. Give us a call and find out how we can help you today!