Jan 03, 2023

Should You Offer a Better Salary or More Comprehensive Benefits?

Salary or Benefits?

Today we thought we would ask KeyHire Founder, Corey Harlock, some common questions we often receive from clients.


Is it better to offer a large salary or more comprehensive benefits?


There’s no general answer. I can’t say salary over benefits. It depends on the person. And as small business owners, this is where we can be agile.


It isn’y uncommon to interview someone making a hundred thousand dollars and owners offer them, $115,000, then they do the math and realize your benefit benefit package isn’t as strong as their current one. And when they do the math, they’re gonna be able to pocket $500 a month.


So really, It’s just a $9,000 raise instead of a $15,000 raise. 9% isn’t as good as 15% and they’re not being greedy. That’s just the way it is. So what do we do? We level them up and increase salary to compensate for the smaller benefit package.


Because they have a family, maybe they have a spouse or children, and benefits are really important to them. So we help them with it.

Maybe it’s a single individual, and they could care less about a benefit package. They want basic coverage, and they’re all about the money.

Then you gotta pony up if they’re the person that you want. Is it worth losing someone over $6,000? If you’re looking at $115,000, we’re looking at 5% and to return to the market, find someone and go through the process again. Just the productivity you’re losing daily makes the $6,000 worth it.


Will transitioning back to the office full-time actually hurt retention?


It depends on the individual. If you have someone you really wanna keep who has a ton of internal knowledge has been with you, and you trust and they deliver and they have the capacity for you to scale, and they have spent the last two years working from the home that they’ve been paying a mortgage on, not sitting in traffic for two hours a day and having breakfast with my they’re kids, They’re not going to want to lose that.


If you call them back to the office full-time, They’re probably going to go look for another job. Talk to them, work it out. They probably don’t want full-time. They probably don’t want a hundred percent remote.


Some people might say, I have zero desire to come back to the office. And then you gotta work that out with them too. But again, considerations. Is it a low performer that it might benefit your business to find someone new? Are they a mid performer?


With a low performer, you’re able to take a harder line with them and say, “sorry, you gotta come back to the office. Or we’ll find someone new.”


With a high potential person, you need to work with them and figure out a solution that will work for both you and them, without compromising business performance.


Schedule a Free Consultation With Corey: www.keyhire.solutions/consultation


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