In this video, Caissa Recruitment's founder Konstanty Sliwowski discusses offers his business is seeing during Corona times - both higher and lower than previously seen!
The transcript is as follows:
In the current circumstances we have found that some companies feel that they can make hires and also offer lower compensation. A word of warning here. Paying lower salaries now is playing the short game and it will come back to bite you.
Firstly, the best people in the market are still very much in demand and we have seen candidates receive multiple offers even in these unusual times. People are also still very much aware of their worth and the majority of companies who are currently hiring have not reduced their salary or compensation levels. In fact, for critical hires we have seen companies improve their offers and lower probation periods to get the right people onboard.
Secondly, even if you are able to make a hire at a below market salary level you can expect that the candidate will be aware of this. Aside from the question of why they were willing to accept a significant pay cut, it also means that they will continue to keep their eyes open for better opportunities and you can make a very calculated bet that as soon as an opportunity at market rate comes around they will be leaving you for it.
Now, imagine the impact this would have on your business if they would leave? Do you really think it is worth making a small salary saving now given the risks of losing this person?
Aside from all that, do you think it is the best way to start a working relationship by paying someone less than they are worth?