It’s common knowledge that IT has very rapidly evolved in recent years, with one innovation leading to another. Salary information, however, has been evolving just as rapidly. Salaries for IT professionals, software engineers and project managers were previously adjusted only every few years; now, they’re often adjusted semi-annually or annually. Compensation isn’t the only reason for an employee to take a career opportunity – company culture, dynamics, direction and experience also play a major role as well – but large disparities are very motivational to either accept or leave a position.
In a rapidly changing compensation structure, you should also be using benchmarks. Here are 5 reasons why.
1) Needs change quickly. Very quickly. While it’s unlikely that your organizational structure or entire skillset will need to adjust semi-annually, additional training for various other skills certainly may. Knowing what those skills are worth will allow you to compensate fairly.
2) Others are doing it. While one company should not jump off a bridge because another does, you don’t want your talent to jump ship because of a large pay difference. At the very minimum, knowing what your competitors offer for a similar position can help position you as a leader in hiring the best talent.
3) Don’t overpay. Paying an IT professional what they’re truly worth works both ways. You don’t want to find yourself overpaying for an unnecessary skill. It might look nice on a resume, but if last year’s necessity doesn’t add legitimate value for your business, it’s not a real benefit.
4) Predict trends. Like any other data, having accurate benchmarks allow you to predict earning trends, improving your budget forecasting, allowing you to remain very competitive for future talent – without struggling to find the extra money in an unrealistic budget.
5) Job satisfaction. When hiring a new candidate, or offering an employee a raise, knowing their worth will factor in to the equation – not just to keep them away from other offers, but to increase job satisfaction and to keep morale and productivity at its peak.
Benchmarking is a major part of compensation, which is one of the biggest recruiting factors. While it certainly isn’t a substitute for corporate culture, dynamics, and general atmosphere of a company, it is a very compelling reason why IT professionals accept a career position.
At The Armada Group, we recruit for some of the largest and most lucrative positions in the nation. Based in Silicon Valley, several of our clients are Fortune 500 companies, and we deliver only the highest levels of technical talent, and we want to deliver talent for you as well. Contact us today for a consultation on how we can help your business grow, offer the right compensation, and become more productive.
If you are looking for technical recruiting firms in San Francisco, contact us.