Comment by vasco
5 months ago
A company doesn't need to know they are under compensating for a role from a third party. They'll find out by the quality and number of applicants pretty fast. I've seen this in practice directly when we couldn't hire for certain roles, raised the range, filled the spots.
On the other hand, to know that other companies are paying lower and still able to deliver roughly the same work is harder unless you know how much they are paying.
I have to disagree. If you're not getting quality applicants, how do you know if that's because of your salary range, the default applicant pool, or something idiosyncratic to your company?
If you're a new startup founder, you don't always have a good sense of what the default applicant pool should look like. You might have a sense of what quality looks like but how would you know without recruiting experience what the mix of quality to non-quality applicants is supposed to be? There are many reasons why you might not be getting the number of quality applicants you want, and compensation is just one of them. Salary benchmarking data helps eliminate that as a possible cause.
Because when we raised the range it fixed the problem.
I'm not talking about you, I'm talking about people in general.
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