‘What is the market rate at the moment for my role?’ and 'What price am I looking at for X, Y and Z?’
The truth is, permanent salaries have continued to fluctuate throughout the past 9 months. However, this doesn’t mean a candidate’s worth to a company is questionable. One of my connections, a Director, reached out to me following a disagreement regarding the supposed‘taboo subject’, of agreeing a salary/package with a potential new employer stated,‘Good companies want good people; they pay good money and look after their people.’ Never a truer word spoken.
For instance, if a NetSuite candidate is willing to drop 10-15% of their current salary, the question has to be WHY? Let’s fast forward 6 months. Your competitors within the NetSuite market are more prominent and your highly skilled Netsuite employees are now being approached for potential role. The subject of your employee’s previous remuneration package is rising to the surface and before long, their expectations are heightened, also known as, competitive market rate. There is a percentage that will stay within their current roles, however on the whole this will at least spark the ‘what if’ question within a candidate. The worst-case scenario, a resignation, could be landing in your inbox within the next 4 weeks and you can’t do anything about, so you think.
Costly Bad Hires
Offering a remuneration package lower than market rate, doesn’t only cost you more in the long run as your Netsuite hire is now actively reviewing other opportunities, but it has been even more costly with the initial time and money spent in interviewing multiple candidates, on multiple occasions and multiple decision makers along with potential project delays and reduced system utilisation.
All of which could cost hundreds of thousands if not millions. Statistically, a bad hire costs a business thirty times what they spend in on-boarding/salary etc. for the period of employment.
I can appreciate the temptation of potentially grabbing yourself a bargain, a CV that reads like the who’s who of NetSuite, but in reality, this doesn’t come around that often. Just in the last week, a candidate I represent was not progressed in the process, as a ‘more experienced’ candidate was willing to take a £20,000 salary reduction. Bitter recruiter you may think? Certainly not, just experienced and I’ve seen it all before. It’s my job to advise and support a hire process on both the client and candidate’s behalf, when I outlined this to the client. I was met with the response,‘I suppose this is how it is now’. This is not how it is or how it should be, if I was betting man, I’d put money on the fact that I’ll be speaking to that client within 6 months.
Value of the Candidate
A company’s ethos is important in building commitment within specialist hires. Companies, not all, but most will think an offer lower than a candidate’s expectations will be accepted on the candidate’s experience of the interviews/enthusiasm for the role, in fact candidates feel a salary is a reflection of their worth and understanding of the value they can add.
Now, I appreciate the Covid period has presented some tough times and there are budgets that need to be kept to, but I have openly had discussions with multiple clients since the beginning of Covid-19, who have stated,‘I want an excellent consultant, but I can’t pay market rate.’or‘I want to see the candidates’ current payslip.’A candidate should be hired based on their previous experience, knowledge and of how much value that candidate could be to that company, not based on how cheap they are. The market dictates their value, not the client.
In summary, the NetSuite market is actually more competitive than ever with regards to salaries and expectations. The potential loss within a business is not just the hire themselves, the cost begins from the initial conversation to bring in a hire, all the way through to agreeing project timelines, as they are always factored within this.