Foyne Jones, recruiter of choice for the KBB, Builder’s Merchants & Construction Supplies sector talk frankly about sharing salaries pre-interview, so businesses can help new and existing staff to better manage the cost-of-living rise as The Money Charity reveals 29% of UK adults are using credit cards to pay for essentials.
Peter Jones, Founder & Managing Director at Foyne Jones says: “The UK economy is experiencing a ripple effect right now, as greater levels of inflation, ongoing political upheaval and the war on Ukraine have all contributed to the cost-of-living increase. I recognise that many small businesses continue to navigate the economic harm caused by the pandemic, however the same can be said for the average homeowner who has also experienced nationwide job losses, market uncertainty and now, energy, food and fuel bills at an all-time high!
So, what can be done to help limit the damage to your business and future staff? I believe a great starting point is to remove the veil of secrecy around salaries and earning potential when advertising a new role in your company. Let the people know what they can earn with you so they can make an educated, well-informed decision and ultimately plan for the future. At the very least, it will allow them to budget for a change in household circumstances such as a pay cut, reduction in hours, rent increase and higher mortgage rates.
When it comes to looking after your current team, then you could look at the redistribution of funds through postponing company events, free business tools and services, remote working, even a paperless office to recoup costs. In doing so, you will be able to invest this money elsewhere including employee incentives, rewards, company growth and investment. In fact, Foyne Jones is exercising this exact strategy at the moment having recently been shortlisted for the finals of this year’s Global Recruiter Awards for Best Recruitment Process Outsourcing Business. It would be wonderful for the team and I to attend this event but on reflection, I felt the money spent on awards tickets would better serve my staff and so as a business, we paid the equivalent ticket value into their bank accounts instead!
Everything costs, so whether you’re paying to run a showroom or help with added costs for those working from home, be honest about what you can and can’t supplement. As a mental health ambassador, I know that financial difficulties are a common cause of stress and anxiety and being kept in the dark is only going to add new pressures. In my opinion, ending salary secrecy is a quick way for employees to gauge a clearer idea of the potential for upskilling, promotion or moving into a neighbouring position to increase their pay band.”
Interestingly, the recruitment sector is showing signs of greater employee movement next year as the latest global report from PwC indicates that from those surveyed, 1 in 5 are extremely or very likely to switch jobs. Holly Spring, Associate Director, at Foyne Jones explains, “I invite employers to share more information on salaries prior to first-stage interview because time is precious for both candidate and businesses alike right now. We continue to develop solutions that use creative pre-selection tactics like video technology to assist with recruitment and increase the level of transparency between candidate and client. Salary disclosure has therefore become an integral part of our recruitment process, seen as a priority for jobseekers’ when advertising the role. Greater transparency means that candidates can rule themselves in or out right away, especially if they need to factor in travel costs or childcare, like I do as a working parent.”
Peter continues, “Building financial resilience both personally and professionally needs to be the bedrock for every business and the survival of our industry, so newcomers and established players can benchmark their earning potential from the get-go and make the best choices for them. Whether you are an employer looking at the different pay bands in the market or a keen professional weighing up your options, knowing a salary from the very beginning will manage expectations, encourage genuine prospects, and ensure the ideal candidate every time.
If you are looking to work with a recruiter, find out what their philosophy about salary discussions are. If you’re not in alignment, don’t proceed. You will only be out of pocket and disillusioned, just like a jobseeker who has forked out time and money for a face-to-face interview and is still none the wiser about the take-home pay!”