Hiring 101: Never Overpay for Creative Staffing
Companies are in need of more creative input to keep up with the fast pace of change in marketing and sales. Consequently, hiring managers often make financial offers that they believe ‘can’t be refused’ to ensure the offer is accepted. This strategy not only leads to overpaying for talent, but also creates a vicious cycle of ever-increasing salaries. It can also be a destructive strategy to follow.
Why You Will Be Tempted to Overpay for Your Next Creative Recruit
There are a variety of factors that cause overspending in the recruitment process. The most common one is a lack of planning.
It is important for companies to spend time upfront to find out what type of talent they need and then find the right candidates with that skill set. You must consider how to maintain your workforce and hire new talent when needed.
In addition, with rapid technological advances, U.S companies are suffering from severe skills shortages.
In a global study on workforce needs, McKinsey & Company found that almost half of companies are facing existing skills shortages, and a further 44% expect to face skills shortages in the next five years – a total of 87% experiencing difficulty in hiring skills now or expecting to experience difficulties in the next few years.
When combined, these factors – poor planning, urgent need, and a lack of suitably skilled candidates – make it tempting to over-offer.
Why Overpaying for Talent Is Bad for Your Business
Talent acquisition is one of the most high-risk, high-reward areas of investment for a business. On the one hand, you must be willing to pay competitively to attract top talent. On the other hand, you need to make sure that you get value for money.
Overpaying for talent is bad for your business. It can lead to animosity between your employees, and overpaying on employees who don’t deliver on their promise. When a company overpays for a specific skill set, it can become difficult to attract other talented people with different skills – especially if you have a fixed budget for salaries.
Finally, do you want an employee whose prime objective of working for you is the exorbitant salary you are paying? What happens when your competitor comes knocking on their door with an even higher offer?
Despite these potential downsides of overpaying for talent, many companies continue to do so. They believe it is the only way they can compete for the talent they need for their business.
Look Beyond Salary to Hire Creative Talent
While it is important to offer the correct and competitive salary, it is rare that the most talented candidates are fixated on salary alone. They are more focused on career opportunities, culture of work, company structure, flexibility of work schedules, and other perks and benefits.
It’s essential to recognize that not all candidates have the same needs and desires of work. What does this mean for hiring companies? You must tailor your offer to the candidate. Consider what it is that makes them tick, what they want now, and what will make them happy in the future.
Paying a high salary is a short-term fix for a long-term need. It may satisfy a candidate today, but that candidate may crave greater autonomy in their creative role and the potential to progress rapidly in their career. Or they may wish to work from home two days each week.
To learn what candidates need, it is crucial to have meaningful conversations with them. You must learn what it is they really want, and then deliver to this – and keep to any promises you make when making the offer.
Creative Staffing: Options to Close the Talent Gap
With increasing shortage of talented creatives and stiffer competition for their signatures, it’s important to think beyond old channels and plan for your creative staffing needs. You must be more flexible with your hiring methods. Alternatives include project contracts, full-time hires, and direct hires.
Project contracts are used when companies need a specialized skill set that is not available in their company but that is needed for a specific project. A project contract usually involves a short-term or temporary employment relationship that can last anywhere from two months to one year, perhaps longer.
Full-time and direct hires are usually preferred for employees who will play a key role in the company’s future growth and development.
In the sprint for creative talent, TECHEAD will help you explode out of the blocks. We’ll discuss your needs with you, get a full understanding of the skills you require, and use our network, reach, and talent pool to source candidates who will deliver without the risks of you breaking the bank.