Why should you ask candidates about their salary expectations? Co-hosts Hannah Robinson and Melissa Honan discuss how business owners can set salary expectations based on a candidate's skill level, experience, and location.
- Hannah and Melissa start the conversation by announcing that this will be their last episode on the podcast. Ben Robinson will go back to hosting the show next season.
- Hannah explains how inflation is changing salary expectations and making it harder to attract high-quality candidates.
- According to Melissa, the first step to navigating pay expectations is having an idea of the type of candidates your budget can attract.
- Melissa believes business owners should set a pay range for salary negotiations because stating a specific number can weaken your negotiating power.
- Hannah and Melissa describe why business owners should create and stick to a realistic business budget.
- Melissa is a strong proponent of fair pay and keeping up with inflation but never at the expense of your business.
- For Melissa, your business model needs an update if you cannot afford a yearly pay increase to keep up with inflation.
- Hannah describes why business owners should always have a number in mind before going into pay negotiations.
- Hannah reveals the frustrating feeling of overlooking the "perfect" candidates because their pay expectation exceeds your budget.
- Melissa and Hannah agree that having a good team with less profit is better than having higher profits and managing a bad team.
- Melissa highlights the differences between managing pay rates for full-time employees and subcontractors.
- Hannah illustrates why new business owners should hire subcontractors first before going after full-time employees.
- Melissa points out the direct link between higher pay and higher employee retention rates - but company culture and work-life balance also play a significant role in retention.
- Employee turnover isn't always your fault - but at the bare minimum, Melissa believes business owners should always plan for turnover.
Mentioned in this episode:
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