So, you’re looking to hire new staff? A word of warning… cheaper candidates may save you money in the short run, but sometimes paying a little more in the beginning is beneficial for your business in the long run.
Candidate fit should always be priority when you are looking at your budget and staffing plan, not simply cost alone. You should be looking to hire the candidate with the right attitude, and then discussing a fair and market-competitive salary at which they will accept the role.
In order to hire the candidate with the “right attitude”, you must understand your hiring needs thoroughly and determine the level of skill-set and knowledge needed in a candidate to successfully perform the responsibilities of the role.
Cheaper candidates, therefore, are best only when they meet this requirement. They will likely have less experience than higher paid candidates so it is crucial to understand your training program and know if it can close their skill gap. If it cannot, then you may be leading down a road of “fire & re-hire”.
Retention is key for success and reducing hiring (and re-hiring) costs, so you need to ensure the candidate you choose has the required skills, but a factor equally important is that they also have a high level of engagement.
Higher paid candidates may have more expertise than cheaper candidates – often having had more working experience – but a more affordable candidate will likely be hungry for the opportunity to work and could potentially show an even higher level of engagement as they strive to prove themselves.
You must strive to find the happy medium between skills and cost when hiring. With this in mind, it’s useful to remember that sometimes even well-experienced candidates will take less pay for what they feel is the right opportunity for them.