So you’re in hiring mode, and ready to pull the trigger on bringing new sales talent on board. Now, the big question: how – and how much – should you compensate your new hire?
Many job descriptions will list a base pay range. For sales positions, most will add “plus commission,” or “pay commensurate with experience.” What’s the best way to proceed here?
Be upfront. Don’t list a position without including at least an expected range of compensation. There’s no point in wasting time on candidates who aren’t shopping in the same neighborhood.
Details … and wiggle room. The best descriptions combine an expected range of pay with some real specifics about how compensation will work. Go ahead and give a base pay range that allows some latitude, but be very specific about the revenue or profit targets the successful candidate will need to meet. This will help to sort out both those who are overqualified and those who may be dreaming a bit too big. You want a pool of realistic prospects.
Don’t cheap out at the end. Nothing is more frustrating to a candidate (or a recruiter) than going all the way through the interview process only to receive an offer that’s below the advertised base range. Don’t rationalize that because your figure is more than a candidate is currently earning, they’ll make the jump anyway. Winners need an incentive to make that move, and this is a recipe for starting off with a demotivated employee who wonders if his potential new employer can be trusted. Nobody wants that.
As with most other components of the hiring process, a successful compensation plan begins with some careful thought and planning. Contact us if we can help.