Throw Your Salary Guide In The Garbage

Throw Your Salary Guide In The Garbage

Is your salary guide telling you one thing and your recruiter telling you another?

Here’s what I would suggest you do if you want to fill your job, “throw your salary guides in the garbage”.

At Frederick Fox, we are having the “salary” discussion daily with our clients and with our candidates. While these conversations have never been easy, they have become increasingly more complex and also contain new “2021 expectation prongs” than we have seen or experienced before.

Here are some of the forces at play that is causing salary discussions to be more complex:

  • The reality of the labor market which is a candidate market
  • Previous salary guides and “expectations” are no longer the new norm.
  • An increase in premium to change by the candidate in an inflationary and competitive labor market
  • We do not have previous data to guide us in this new labor frontier
  • We are dealing and moving into a high inflationary environment
  • Salary is contingent upon WFH, Benefits, and “flexibility” more so than just “money”
  • Premiums to change jobs have increased due to fear of the unknown. People do not “have to change” and hold more bargaining power than ever before
  • The great Resignation is not only a reshuffling, it is wiping out candidate pools completely
  • Candidates are demanding higher pay to work for big corporations that have “old-school” corporate WFH policies

So, what salary guide should you use in 2021?

The truth is no one or no published media has a playbook for our salary guides in 2021. We can expect the big recruiting agencies to publish astronomically high salary guides for 2022 and use them to schedule sales appointments soon. Be on the lookout for this annual email coming to you soon 😊

Frederick Fox believes the best compensation study you can do is to “tap” your market for your desired skills and qualifications and see what the top 5 candidates are making and asking for. There is no better data than your recruiter’s real-time search data of the current candidate pool. You should trust the experienced recruiter you hired or the data the search agency you are paying is giving you. You are after all paying for their expertise to help you land the talent so that you can reach your corporate objectives.

Finally, I would like to close by saying: “You can either lower your candidate expectations, offer a higher salary, or continue to see your job opening remain vacant.”