At Mackenzie Stuart, we bridge the gap between skilled candidates and organisations seeking to enhance their teams. However, one persistent challenge we face is the issue of clients under offering candidates. Under offering can have significant repercussions for both the employer and the candidate. Below, we explore why under offering occurs, its potential impacts and how we can guide our clients toward making competitive offers that attract top talent.
Why Does Under Offering Happen?
Budgetary Limitations: Often, companies have limited budgets for new hires, leading them to propose lower-than-ideal compensation packages. While financial prudence is necessary, it shouldn’t impede attracting the right talent crucial for success.
Misjudged Market Value: Some employers may not have current market data or may misinterpret the value of certain roles, resulting in offers that do not align with industry standards.
Risk Aversion: Companies might offer lower salaries to mitigate perceived risks, especially for roles with limited job security or for candidates who are making a career shift.
Expectation Mismatch: Sometimes, there’s a disconnect between what candidates expect based on their skills and experience and what the employer is willing to offer.
Consequences of Under Offering
Under offering can have several negative consequences:
Talent Loss: Highly qualified candidates may decline offers that don’t meet their expectations, leaving companies without the expertise they need.
Longer Hiring Cycles: Positions may remain vacant longer if offers are consistently rejected, causing project delays and overburdening existing staff.
Employee Dissatisfaction: Candidates who accept lower offers may feel undervalued, leading to decreased motivation and higher turnover rates, which can ultimately be more costly for the company.
Brand Reputation: Companies known for offering below-market rates may struggle to attract top talent in the long run, damaging their employer brand in the competitive recruitment market.
Our Approach at Mackenzie Stuart
Market Analysis: We provide our clients with detailed market data and salary benchmarks to ensure offers are aligned with industry standards and competitive enough to attract the right talent.
Highlighting Total Compensation: Beyond salary, we encourage clients to emphasise other aspects of their employment package –such as work-life balance, career development, and company culture- that can make offers more appealing.
Open Communication: We promote open communication between clients and candidates, encouraging negotiations that can lead to mutually beneficial agreements.
While under offering presents challenges, at Mackenzie Stuart, we view it as an opportunity to guide our clients towards better hiring practices. By aligning offers with market standards and focusing on value beyond salary, we help clients attract and retain top talent, ensuring successful placements and fostering strong, lasting partnerships.
