THERE IS NO COMP STRATEGY WITHOUT HIRING ACCURACY

We know a company that recently decided to raise compensation from $14/hour to $17/hour for an entry level role.

The goal?

Attract higher quality candidates (thereby improving performance & turnover in the role).

In doing this, the company understood something crucial.

>You can't have an effective compensation strategy without #hiringaccuracy.

Will raising compensation attract higher quality candidates? Yes.

Will it also continue to attract the other kind of candidate (& more of them)? Also yes.

Increase compensation without improving hiring quality? You'll get the same result at a higher cost.

Increase compensation while improving hiring quality? You'll get remarkable results (AKA a return on your investment).

LET US EXPLAIN:

A great hire creates at least 2-5x more value than a bad hire.

That means a ~10-25% pay increase could could produce 200-500% the value.

If your hiring process accurately identifies great hires, it will do that.

If your hiring process doesn't accurately identify great hires, it won't.