Recession and Inflation: How to Better Position a Job Offer?

Looking Beyond the Numbers

When evaluating a job offer, it’s essential to look beyond the numbers to fully appreciate the total compensation. This is even more crucial as the looming possibility of a recession adds anxiety to the hiring process.

Sébastien Vachon, Director of Talent Management, shares key recommendations for navigating this uncertain landscape. Could enhancing total compensation help reassure potential candidates? Absolutely—but only if it’s clearly communicated.

What is Total Compensation?

Total compensation includes all the benefits an employer offers. It consists of three components:

• Direct compensation – salary, tips, commissions
• Indirect compensation – retirement plans, benefits
• Non-monetary compensation – workplace flexibility, career growth, work-life balance

Sébastien has observed that candidates now value financial security just as much as salary increases. Factors like flexible scheduling, remote work, retirement plans, and a company’s financial stability play a crucial role in decision-making. The question employers must answer is:

Can we improve employees’ overall happiness or, at the very least, reduce their sources of stress?

For candidates, a 20% salary increase may seem appealing at first glance. However, if the overall benefits package doesn’t align with their values and priorities, it’s worth digging deeper. If an employer’s compensation philosophy doesn’t match your long-term needs, it may not be the right fit.

A Shifting Job Market: Aligning Values is Key

Economic uncertainty influences recruitment trends. Some candidates hesitate to make career moves, even in a talent-short market. According to Sébastien Vachon:

“Candidates are asking more questions about leadership styles and company stability. While not always a dealbreaker, many now want near-complete alignment with a company’s values. They’re not willing to trade stability for a lateral move—they want a clear improvement in quality of life. Higher salary expectations and signing bonuses are becoming increasingly common.”

Beyond numbers, compensation should reinforce a company’s values and strengthen employee engagement.

What Should Employers Focus On?

Could today’s economic conditions shift some negotiating power back to employers? While we won’t return to pre-pandemic hiring trends, this is an ideal time to reassess employee benefits. In 2024, employers need to be creative and offer customizable perks that cater to individual needs.