Salary or benefits? According to the U.S. Bureau of Labor Statistics, there are still nearly two job openings for every unemployed worker, which helps explain why American job seekers are receiving more offers than at any other time in recent memory.
For businesses, the hot labor market is increasing pressure to outcompete other businesses for top candidates. The two most obvious ways to do so are by offering a higher salary or more benefits, but which one are candidates focused on?
Do your homework
To find out whether candidates for your open positions are more concerned with salary or benefits, start by researching your particular industry and market. The answer is likely to vary depending on whether you’re in the tech industry or retail, for example.
In general, we’re seeing that today’s entry-level job seekers are more focused on starting salary than on benefits. Given high inflation and other economic concerns, their focus is understandable and suggests that raising your salary offering could help you attract more entry-level workers.
On the other hand, today’s more-experienced workers seem to care more about benefits than they did in the past. This too makes sense, since they tend to be older and may recognize better than entry-level workers the value of high-quality benefits. As we’ve written about in the past, it’s critical to offer the right benefits to be competitive, including not only healthcare and retirement, but also flexible work arrangements and other perks.
Tailor your messaging
Once you’ve researched your industry, you should have a better sense of whether the salary and benefits you’re offering now are competitive, and if not, which area needs the most attention. However, it’s not enough to know what to do—you also have to make sure that your messaging to job candidates clearly conveys your efforts.
Make sure that your job listings and other messaging to potential applicants emphasizes the strengths of your offering, including a high salary and/or generous benefits. Be sure to list, clearly and in detail, the specific benefits you offer, so busy candidates can quickly determine whether you offer what they need.
Get the help you need
Our recruiting services team can help you find and hire better candidates, so you can grow your business efficiently. Contact us today to learn more about our services.