Most employers know how important it is to hire skilled workers and to keep them engaged to ensure retention. Studies have shown that engaged employees are more productive and less likely to leave their jobs. That means they not only earn their companies money by producing above-average work, they also save money by reducing turnover rates. According to Business 2 Community, companies perform up to 202 percent better when their employees are engaged, compared with companies whose employees are not.
Much has been written about how to improve employee engagement in an organization, but the first step is often skipped over and it is, arguably, the most important step: Making the right offer to new hires sets the tone for their entire future with the company, including how engaged and loyal they will be.
Set the Right Tone
A good employment offer makes candidates—and future employees—feel valued right away. It shows the company believes in their abilities and wants them to be a member of the team. It make employees felt respected, which can make them excited and proud to start their career with that company.
That initial level of excitement makes a difference forever. An employee who starts a job on that positive note will be more likely to perform at a high level, serve as a brand ambassador for the company and remain loyal—even in times of economic hardship. The company’s relationship with them is rooted in the respect showed when an excellent offer was extended and when it comes to keeping employees happy and loyal, there is no substitute for respect.
Now is Not the Time to Be Frugal
In today’s construction market, exceptional employees do not stay on the market long. Companies can be sure that if they have expressed interest in someone’s talent, another company either has already or will soon. An initial offer to a strong candidate is not the place to pinch pennies.
Consider what could happen if an offer goes the other way. For example, knowing a company has a budget range of $80,000 to $90,000 for a position, candidates could rightfully be offended if they receive an offer at the very bottom of that range. Even if a candidate accepts the offer, his level of enthusiasm will likely be much lower. He may wonder how much the company really values him rather than feeling certain that they hold him in high regard and want him on board.
If that candidate is in contact with other companies, he may reject this company’s offer, holding out for a better one, which would prolong the company’s search process and cost it more money than would be saved with its reduced offer.
When it comes to making an offer to a candidate, plan to pay up to but not over your maximum budget for the position. If the company can reasonably afford to pay $90,000, then make that the offer instead of trying to save a few thousand dollars and risking a valuable, long-term hire.
Put simply, initial offers to a candidates are a clear communication of how much the company values their skill sets and how much the company wants the candidates on their team. While money is not everything when it comes to securing a hire or to building employee engagement and company loyalty, making the first offer your best offer establishes a foundation of respect and enthusiasm that will cause a ripple effect long after the new employee’s first day.
