Talent Acquisition, Transparency and Compensation: From Posting to Negotiation

By Lisa McKeown, Danisha Martin and Eric Salyers – Nonprofit HR

Successfully recruiting a candidate starts long before the job posting. It starts with understanding the critical role of transparency in your organization’s compensation practices and how it factors into the talent acquisition process. By prioritizing a partnership between total rewards and talent acquisition, your organization can create and sustain a compensation approach that also advances equity in your entire talent acquisition process. 

Compensation: Beyond What Your Organization Pays its Employees 

An internal compensation structure is the foundation on which your compensation offer to a potential candidate is formed. A compensation philosophy comes into play next, which is the outward statement, to your staff and board, of inward practices and a commitment to how diversity, equity and inclusion are infused into compensation decisions. As a guide, this statement ensures equity is at the forefront of your compensation, and talent acquisition, processes. Displaying this statement will also foster greater transparency and trust with both staff and potential candidates.

However, compensation doesn’t just come as a paycheck. For example, offering unlimited paid time off (PTO) or transportation support can be an immense benefit because compensation no longer reigns as the driving force for job seekers. In fact, only 32% of respondents in the 2021 Nonprofit Talent Retention Practices Survey considered compensation/benefits a primary reason to leave a job. Candidates are now embracing the need to work in an impactful role that aligns with their values. Thus, consider how flexible your organization can be when designing new hire offers to add this type of value and reinforce brand differentiation.

Transparency: Getting Comfortable with the Uncomfortable

Posting the position salary range in a job description demonstrates that your staff know the compensation structure for each position, where they fit in the structure and how equity plays into salary decisions. It indicates that the organization has done the work—and that is an organization candidates want to join. 

If you are a leader, you may have a fear of transparent compensation conversations with staff, even if there is an established structure in place. But staff want to know that they’re being paid fairly and are often comparing salaries amongst themselves. Thus, outlining how compensation decisions are made and highlighting opportunities for career (i.e. salary) growth are how to keep staff motivated and engaged, and set the organization up to thrive.

Talent Acquisition and Total Rewards Partnership

A collaborative partnership between your talent acquisition and total rewards teams ensures a continuous feedback loop of understanding the structures, practices and processes in place, which can encourage organizational cohesiveness and efficiency. For example, your total rewards team can partner with the hiring manager to determine specific role ranges and ensure they know how the structures work. It is also imperative to assess whether your compensation structures are attracting the right candidates your organization is seeking, indicating areas of opportunity to infuse equity

To strengthen this partnership, start by providing each other resources. Consider having your total rewards team create a one pager of your benefits offerings for your talent acquisition team, or participate in salary surveys, which will give your organization a baseline of reliable data to begin benchmarking. The goal is to create a symbiotic partnership between each team of subject matter experts to effectively operationalize your organization’s commitment to equity. 

View the accompanying webinar recording here.

 

Originally published on nonprofithr.com.

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