Factors To Consider For Setting An Appropriate Salary Range While Hiring Top Executives

When it comes to hiring top executives, the compensation and benefits being offered to them by the hiring organizations prove to be an extremely critical deciding point. Most people that to set the salary range for these positions is a fairly straightforward process. However, the experts from the top executive search firms in Shanghai beg to differ and consider it to be relatively complicated. This is because the salary range deeply impacts the success level that organizations can attain in attracting and recruiting top executive talent. That is why they advise organizations to follow the below-discussed tips for setting the right salary range while recruiting top executives.

Local Market Trends

Being aware of the local market trends in terms of the compensation and benefits being offered to executives appointed in similar positions can help organizations set the right salary range. This information can be readily obtained through some research or by consulting with the local headhunting agencies. Considering these trends makes it easier for the hiring organizations to negotiate with the shortlisted candidates more confidently. This naturally helps them gain an upper hand during the final interactions with these candidates and helps them avoid the risk of losing good professionals.

Level Of Competition In The Job Market

Another important factor that hiring organizations need to consider is the level of competition for that specific position in the job market. If the number of suitable candidates for a key executive position is far lesser than the number of openings, then companies might have to increase their salary range to attarct the right candidates. On the other hand, if the candidates available are significantly greater than the number of openings, companies can decrease the salary range. According to the professionals from the top executive search firms in Beijing, this variation in salary range may differ from one region to another and one executive position to another.

Company’s Hiring Philosophy

Every organization has a hiring philosophy that it needs to follow stringently to maintain the trust of its current employees and potential hires. This philosophy is based on how organizations perceive their competitors, how much they value the happiness and satisfaction of their employees. Another important aspect impacting the hiring philosophy of an organization is the availability of budget. That is why the top executive search firms in Asia consider it to be an important factor for deciding the salary range of top executives. Since the hiring philosophy of an organization may change with changing market circumstances and business growth, this is a relatively flexible factor influencing salary range.