Be in the know
Sébastien Vachon
Senior Advisor, Talent Management
Recession and inflation: how to best present your job offer
October 13, 2022 - Be in the Know
When it comes to evaluating a job offer, you have to look beyond the numbers to understand compensation. Especially now, when rumblings of an imminent recession can have a stress-inducing effect on your recruitment efforts.
Our chief talent management advisor, Sébastien Vachon, has some tips for how to navigate these turbulent times. The real question is: Can increasing total compensation reassure future candidates? Let’s take a closer look.
What is total compensation?
Total compensation is the full scope of benefits you can offer employees. It has three components : direct pay – salary, tips, commission; indirect pay – pension plans, employee benefits; and non-pecuniary income.
Lately, Sébastien has noticed that candidates are lending as much importance to money as they are to greater stability: flexibility with work schedules, telework, retirement plan, as well as a business’s financial position. The decision to leave (or even stay) may depend on the answer you provide to this question: Can you improve employees’ overall happiness or, taken from a different angle, can you reduce your employees’ sources of stress?
If you are a candidate, increasing your salary by 20% can be tempting. But if you can’t see the overall benefits in an employer’s compensation package, dig a little deeper. There’s a pretty good chance that your values don’t match that of your employer’s.
In uncertain times: make sure candidates share your company’s values
When it comes to recruiting, our current economic situation hangs in the balance. This can rattle candidates who don’t want to change jobs even if there are opportunities in a labour shortage. Sébastien Vachon sees this in his mandates: “In interviews, I’ve noticed that candidates have a few more questions about the company’s management style and stability. Without necessarily being a priority or the sole deciding factor, candidates practically want a perfect fit with the company. They aren’t interested in changing four quarters for a dollar. They are seeking a marked improvement in their quality of life and there is a spiked demand in salary increases, plus signing bonuses have become more popular.”
Beyond the numbers, compensation must also reflect these values and create a sense of belonging.
So, where should employers start?
No one knows if the current economic context will give employers more bargaining power. We certainly won’t be returning to the same market we witnessed five to 10 years ago, but this is a great opportunity to re-evaluate your employee benefit plans. In 2022, it’s all about creativity and thinking about personalized benefits!
What about you? Have you found the secret recipe for attracting and retaining talent?
Share this article
Our latest articles
