The hiring landscape has changed significantly in Australia. There is evidence that candidates’ salary expectations have increased and the market is showing signs of wage inflation. How do organisations react? One way not to succeed is to do nothing, stick to the status quo and yet still expect positive recruitment outcomes.
An agile mindset is imperative. What can be done?
Be open minded
If your salary bands are not open to negotiation then there is a case for hiring at 1 level below in order not to introduce new staff being paid more than existing staff? Having disgruntled staff can have implications that are difficult to rectify.
Take the market into consideration
Budgets are important. However if organisations base their hiring on who is the best person identified for the role then there may be a disconnect between what that person earns (and wants) and what the budget is for the new hire. Talent costs in any market and a decision needs to made from a cost/benefit perspective.
Offering additional annual leave or other performance based benefits will be viewed positively by joining staff and welcomed by existing staff. The emphasis on work / life balance and working smarter not harder are important factors when creating an overall package for staff
Look after existing staff
Recently there have been examples of where firms have given across the board pay rises in recognition of how staff are valued and also the importance of looking after existing employees. Not all firms are in the position however offering financial incentives may make a difference to retention.
One thing appears certain, the market will become tighter before there is a shifting back to a more balanced supply v demand environment. Working collaboratively with recruitment partners (internal and external) will allow you to more effectively navigate a tough market where solutions can always be found. Be open, be transparent, set the parameters and stick to them as best you can.