When it comes to attracting and retaining talent, having a solid understanding of salary expectations has never been more important. With the introduction of salary disclosure legislation, like Ontario’s Pay Transparency Act, compensation rates are becoming increasingly front and centre in recruiting. Effective January 2019, jobs that are advertised publicly will be required to include the expected compensation or range of compensation and off-point salary ranges can be seriously off putting to candidates. Where once a sub-par salary often didn’t factor into the recruitment equation until an offer was made, today a monetary miss can stop thousands of potential candidates in their tracks before they’re even finished reading your job ad. Fewer candidates applying means a drastically reduced chance of finding a great fit.
To help ensure the salary they’re offering will appeal to the calibre of talent they’re trying to attract, many companies turn to compensation intelligence services. These subscription-based reports and online tools offer access to benchmarking data that has been collected and collated from a wide range of organizations. While this information can offer helpful high-level insights, many clients we talk to have told us it can lack some make-or-break nuances.
Today’s rapidly changing economy can drive significant and speedy changes to compensation rates. Other factors including location, hiring trends and high-demand skill sets are also always at play and may not come across in high-level compensation reports. To illustrate just how quickly and dramatically compensation rates can change, look to this example from the oilfields of Alberta. When the industry was booming in 2015, safety practitioners and professionals were in high demand with the average salary in the oil and gas industry hitting more than $125,000. This was 50 per cent higher than employees working in the health-care and communications industries Canada-wide and Alberta’s average salary for these positions tracked a full 25 per cent higher than Ontario’s. As oil prices plummeted, organizations downsized and these same safety practitioners who had once been in high demand started struggling to find even entry-level jobs. Data suggests that senior positions saw up to a 50 per cent drop in pay for newly advertised positions and junior position salaries decreased by between 10 and 20 per cent.
At Ian Martin, we have recruiters who are in constant contact with both talent and employers from across North America. These daily conversations provide invaluable and up-to-the-minute insight into a wide variety of factors that can impact compensation rates. Whether it’s an announcement of a new satellite office for a high-profile tech firm that could drive salaries up, the addition of a rail line that will create a larger pool of suburban job seekers or a change in immigration legislation that opens up opportunities to eager international talent, our in-the-know recruiters offer context that, when combined with higher-level compensation data, provides a powerful one-two punch when setting compensation rates.
Connect with one of our Hiring Experts today for a no-obligation chat about how we can help you set competitive compensation ranges for advertised positions that will help you attract the right calibre of talent and move your business forward.