Introduction
Hiring begins with creating recruitment plans, which include budgeting and risk assessment. A budget is laid down for the recruiting process itself and for the candidate’s starting pay. Risk assessment is based on calculating the degree of departure of the potential employee and the duration of the search for personnel. Risks exist in selecting a worthwhile candidate and their capabilities. Variable pay is recommended for plans with standard or low risk to minimize the loss of worthwhile candidates.
Plans in the Hiring Framework
High risks are associated with the trustworthiness of candidates for the company. High risks are associated with an employee leaving quickly, so the manager should measure the likelihood of personnel fleeing with the skills they offer (Wardlaw, 2019). Managers can use risk-based pay: withholding a portion of the salary until the plan is met. However, offering a high salary can attract candidates who sell themselves well but lack the skills. There is a high risk of losing a significant recruiting budget.
Standard risks are associated with a steady stream of pass-through personnel hired for regular jobs. Employees in high vacancies are paid medium to high wages, so it is optional to set a starting level of 50% for variable pay (Kuvaas et al., 2020). This amount will allow for candidate management and better consideration of each person for a more qualified job. There is a risk of losing a candidate, but it is much lower than a high-stakes offer.
The low-risk plan is based on a low to mid-level salary offer and premiums on intangible reimbursements. Risks come with the need for longer candidate searches and the weakness of retention through salary management. Variable pay, in this case, is a flexible factor that correlates with candidates’ skills. In this case, the emphasis should be on project prospects and lines of business, offering personal growth more than career growth. Low risks are associated with maintaining a budget and the freedom to choose personnel for the job.
Negotiating Starting Salary
The standard risk plan is to ensure the candidate is qualified, and then offer them a salary fork. It should be emphasized that the starting salary will only be related to completing a portion of the plan and then discussing movement on the salary fork. One should resort to explaining the average salary for the job and the possibilities of additional non-cash compensation. It is essential to offer adaptation mechanisms for employees and inform them about their potential. It is necessary to notify the candidate of the availability of a starter on which bonuses will be built up. It will encourage them to accept, or candidates will seem unimportant, and the candidate will drop out.
The employer offers minimum requirements in low-risk plans and a large optional ceiling. Base pay can probably be standardized with the specificity of pay for each type of work the candidate can offer (Kuvaas et al., 2020). The potential employee’s qualifications would play a role, the selection processes would go faster, and the risk on costs would remain low. Negotiating starting salaries can be based on managing the candidate’s goals. Specific goals for the candidate’s qualities and capabilities will set the stage for managing their potential in the company without wasting resources on payouts.
Impact on the Job Proposal
A low-risk plan is expected to realize itself sooner or later and produce a highly qualified candidate who performs his or her job with a complete understanding of responsibility. At the same time, the wait is tedious and ineffective for an acute vacancy. Standard-risk plans are appropriate for positions that usually do not require specific qualifications because the average staff has a high turnover rate (Pat et al., 2020). A basis in the form of a 50% salary rate can attract worthy candidates who will be willing to work for performance and accept incentives for corporate achievement.
Conclusion
Variable pay is a way to retain candidates with potential and capable of doing responsible work. Such a program is optional for high-risk plans, allowing you to vet a candidate for credibility. For standard and low-risk plans, it will help select candidates more quickly and allow one to manage starting salaries. As a result, these plans can increase job response and employee acceptance because the salary fork will be clear and promising.
References
Kuvaas, B., Buch, R., & Dysvik, A. (2020). Individual variable pay for performance, controlling effects, and intrinsic motivation. Motivation and Emotion, 44, 525-533. Web.
Pat, A., Nuel Okoli, I. E., & Chinenye, N.O. (2020). Influence of contingent pay and variable pay on employees performance of public tertiary institutions. International Journal of Advanced Academic Research, 6(12), 91-108. Web.
Wardlaw, M. K. (2019). Effective human resources recruiting and hiring practices for improving organizational performance. Walden University, PhD Dissertation.