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.
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.