I riffed earlier this year at The HR Capitalist about the self-reported compensation needs of candidates to accept your offer and leave their current company. Here's a taste:
"More than one-third of workers would move for a 16 to 30 percent raise, according to a Salary.com survey. Another third would walk for 8 to 15 percent more in the pay envelope. And one in six said it would take a raise of 31 to 50 percent.
I think those numbers ring pretty true. Here's how I get my head around it:
1. The chronically unhappy or those in danger of losing their job will leave for a lateral pay move or a very small bump. This number is broken out in the above numbers, but based on the other figures, this is about 20% of the average workforce.
2. Those who are at least somewhat content but open to hearing the message from recruiters? The bidding starts with the equivalent of a promotional pay bump, which is the 8 to 15% group. That's a third of those surveyed…
3. Those who are happy and content? They're still willing to listen, but like the Godfather, you'll have to make them an offer they can't refuse – a 16 to 30% bump in pay (33%) or maybe more than a 30% increase (16% of those surveyed). So, that equals 50% of the workforce.
So, those are the self-reported numbers, and I'm always a little leery of using data from Salary.com. Still, assuming these numbers are directionally correct, how do the salary offer needs differ for the passive candidate?
After all, we all claim to want the passive candidate, but are we prepared to pay more?
Of course, we all would pay more. But, I don't think we would have to, in most cases.
Think about the passive candidate. You dig them out, then engage with a phone call. The first decision tree for them is whether they pick up the phone or call you back. The next decision tree is whether they say they are interested or not. If so, the dance begins, and my take is that they are still going to fit scenario #1, #2 or #3 above.
And, that's where the skills of Tolan, McClure or Lee come in, to figure out which box they are in, the probability to close, and get the deal done.
If the right recruiter skill is involved, they qualify the candidate as being scenario #1 or #2, and move them in the process. If it's scenario #3, they make them part of their network and move on to the next candidate.
Good Recruiter = Manageable Passive Candidate Comp Needs.
It's called pre-qualifying mixed with selling, and all the great ones do it well.
Kris Dunn is a Partner and CHRO at Kinetix, a national RPO firm for growth companies headquartered in Atlanta. He’s also the founder Fistful of Talent (founded in 2008) and The HR Capitalist (2007) – and has written over 70 feature columns at Workforce Management magazine. Prior to his investment at Kinetix, Kris served in HR leadership roles at DAXKO, Charter and Cingular. In his spare time, KD hits the road as a speaker and gives the world what it needs – pop culture references linked to Human Capital street smarts.