This is Part-Time Genius Blog on how to grow your business in a profitable and sustainable way.
WHAT: SHOULD SALARY RANGE BE VISIBLE AT ALL?
Hannu Mänty, Chairman of the Board at InHunt Group kicked off a very interesting discussion this morning in LinkedIn. He asked whether companies should publish salary ranges in their job ads and who would it benefit if anybody at all.
My thoughts can be read below and you can follow the original discussion in Finnish here.
SO WHAT: SALARY IS ONE PART OF THE PACKAGE
Companies should publish the salary range with other job details. Why?
As salary should be attached to position, not to person, company for sure has defined the salary target range. The term salary as I use it here includes bonus and other incentive components.
As an active job seeker, this is very relevant topic as I have come across with it recently, actually this week. It is fair to expect that the hiring entity, be it a business or non-profit, has a crystal clear picture of the needs defining the position and its requirements (this is not always the case).
Visibility is good. Published salary range would give the applicant an instant understanding on the salary level of the industry and the company. Yet for both parties it is clear from the beginning that inside the same industry companies are different and can apply different compensation schemes.
It is about setting and managing expectations.
NOW WHAT: CRYSTALLIZE TOTAL REWARD MODEL
Salary is only one part of total reward. Career and development opportunities are often considered at least equally important to pay and benefits. These, together with the work environment and company culture build the employer image. In the fight for the talents, employer image makes the difference.
I would argue that, to an increasing extent, instead of pay, employee interest is moving towards total rewarding where the above-mentioned components together make a compelling package for the employee. It also gives more leeway for the employer to differentiate. A small business cannot necessarily compete with the salary but instead it can offer a position where one can have a direct impact to company's performance and growth.
If you are interested in the topic, ping me and let's talk more about it.
BR Pekka at part-time-genius
Pekka Usva is a seasoned business executive passionate about helping companies reinvent themselves, grow business profitably yet in a sustainable manner.