Dear ....All
In my opinion, hiding the salary will not work. Normally what happens during the selection and interviewing process that we ask candidate and finalize / negotiate about the salary with him as he might expect more than what we are offering to him or to know exactly about his expectations.
Therefore, if he is expecting more and we don't finalize the salary package earlier then we won't be able to retain that employee for longer period of time and thus he will again start applying to some other place.
So I think that it has to be decided and clarified earlier that what exactly we are going to offer him and what are his expectations so that we can also evaluate him according to his expectations that whether he could be paid that much or not and same is for him that he could also evaluate us along with the future prospects.
Please share your comments accordingly and tell me if it is not the case.
Regards
Khalid
From Pakistan, Lahore
3In my opinion, hiding the salary will not work. Normally what happens during the selection and interviewing process that we ask candidate and finalize / negotiate about the salary with him as he might expect more than what we are offering to him or to know exactly about his expectations.
Therefore, if he is expecting more and we don't finalize the salary package earlier then we won't be able to retain that employee for longer period of time and thus he will again start applying to some other place.
So I think that it has to be decided and clarified earlier that what exactly we are going to offer him and what are his expectations so that we can also evaluate him according to his expectations that whether he could be paid that much or not and same is for him that he could also evaluate us along with the future prospects.
Please share your comments accordingly and tell me if it is not the case.
Regards
Khalid
From Pakistan, Lahore
Hi Khalid,
You are right, but in certial cases we can adopt this technique of not mentioning the salary details for example the positions which have high attrition rate.
We can't make it a trend.
We can or We can't, it will be totally based on the position and the requirement.
I have adopted it for the positions with high attrition rate and it works.
Deepali
From India, Chandigarh
You are right, but in certial cases we can adopt this technique of not mentioning the salary details for example the positions which have high attrition rate.
We can't make it a trend.
We can or We can't, it will be totally based on the position and the requirement.
I have adopted it for the positions with high attrition rate and it works.
Deepali
From India, Chandigarh
Hi Khalid,
As I had mentioned in my earlier messages, it's very important that you design your salary package according to the standards of the IT market. Again in our company we always pay the candidates something more than his expected salary. So he can hardly bargain for that amount with another company from his current salary.
More over, a candidate who is running behind money will always do that. So we need to be careful to trace his motive during the recruitment process itself. It's of no use trying to retain someone who's prime motive will be "money"
Binzy
From India, Bangalore
As I had mentioned in my earlier messages, it's very important that you design your salary package according to the standards of the IT market. Again in our company we always pay the candidates something more than his expected salary. So he can hardly bargain for that amount with another company from his current salary.
More over, a candidate who is running behind money will always do that. So we need to be careful to trace his motive during the recruitment process itself. It's of no use trying to retain someone who's prime motive will be "money"
Binzy
From India, Bangalore
Deepali:
One thing that I didn't add in my previous post also comes to mind as I review all the responses you've received--and that's the issue of "job hoppers"--those individuals who make a habit of moving from job to job, simply based on financial opportunity.
In the review process you conduct after you've received a resume from a candidate, you should view the number of job changes which the candidate has made in the recent past.
What's the recent past? At least the last five years. If he/she has made two changes, that's a pink flag. If he/she has made three changes, that's a red flag. If he/she is averaging a job change a year, I'd be hard-pressed to envision an opportunity to bring that candidate to the table for employment.
In the case of job changes, you can generally bet that past performance is a future indicator of opportunity and/or action.
One item that might be helpful is the design of a good Comparative Interview process. I developed the process of CI during a University teaching assignment, tried it in the field in the foodservice industry, and it worked very, very well.
One of the multinational fast feeders has implemented the process and has seen significant reduction in management turnover.
Feel free to read and/or download a copy of the White Paper on which I collaborated with the publisher, Paul Barron, for the magazine Fast Casual at this link:
http://www.restaurantcoachingsolutio..._Retention.pdf
Let me know if I can assist further.
All the best.
Alan Guinn, Managing Director
The Guinn Consultancy Group, Inc.
From United States, Bluff City
One thing that I didn't add in my previous post also comes to mind as I review all the responses you've received--and that's the issue of "job hoppers"--those individuals who make a habit of moving from job to job, simply based on financial opportunity.
In the review process you conduct after you've received a resume from a candidate, you should view the number of job changes which the candidate has made in the recent past.
What's the recent past? At least the last five years. If he/she has made two changes, that's a pink flag. If he/she has made three changes, that's a red flag. If he/she is averaging a job change a year, I'd be hard-pressed to envision an opportunity to bring that candidate to the table for employment.
In the case of job changes, you can generally bet that past performance is a future indicator of opportunity and/or action.
One item that might be helpful is the design of a good Comparative Interview process. I developed the process of CI during a University teaching assignment, tried it in the field in the foodservice industry, and it worked very, very well.
One of the multinational fast feeders has implemented the process and has seen significant reduction in management turnover.
Feel free to read and/or download a copy of the White Paper on which I collaborated with the publisher, Paul Barron, for the magazine Fast Casual at this link:
http://www.restaurantcoachingsolutio..._Retention.pdf
Let me know if I can assist further.
All the best.
Alan Guinn, Managing Director
The Guinn Consultancy Group, Inc.
From United States, Bluff City
Dear All,
I have been following this discussion and have found that not mentioning the salary details in the offer letter, has been received with a lot of acceptance, as a way to curb the rejects.
No doubt, that this method would be a definite deterrent to any candidate to use as a tool to negotiate for higher salaries. My observation has been that the candidates are generally shopping around for offers / opportunities. The salary not being mentioned in the offer letter might not help them in re-negotiating with the current employer, but would not limit them in seeking / exploring other opportunities, most of times, just for curiosity / "testing waters" sake.
I had a chance to speak to some of the prospective candidates on this issue, and got a similar answer - I want to see if I can get something more / better (both monetarily as well as role wise). As it is I have resigned / decided to resign, so why not look out?
How do we curb this attitude. Yes, its an attitude and a mass belief that the more number of offers I have, I am that much more "sought after" / sellable. We need to identify this in the begining of the process itself. But the million dollar question in any recruiter's mind would be - HOW and what are the things that I need to ask / assess the candidate on, before processing further? Given the nature of pressure for volume and time, would we not succumb to the temptation that "let's see once he gets thru the interviews"?
Your comments please......
Raghavendra
From India, Bangalore
I have been following this discussion and have found that not mentioning the salary details in the offer letter, has been received with a lot of acceptance, as a way to curb the rejects.
No doubt, that this method would be a definite deterrent to any candidate to use as a tool to negotiate for higher salaries. My observation has been that the candidates are generally shopping around for offers / opportunities. The salary not being mentioned in the offer letter might not help them in re-negotiating with the current employer, but would not limit them in seeking / exploring other opportunities, most of times, just for curiosity / "testing waters" sake.
I had a chance to speak to some of the prospective candidates on this issue, and got a similar answer - I want to see if I can get something more / better (both monetarily as well as role wise). As it is I have resigned / decided to resign, so why not look out?
How do we curb this attitude. Yes, its an attitude and a mass belief that the more number of offers I have, I am that much more "sought after" / sellable. We need to identify this in the begining of the process itself. But the million dollar question in any recruiter's mind would be - HOW and what are the things that I need to ask / assess the candidate on, before processing further? Given the nature of pressure for volume and time, would we not succumb to the temptation that "let's see once he gets thru the interviews"?
Your comments please......
Raghavendra
From India, Bangalore
Friends
I also came upon another reason for the offer declines, which seems to be the salary structure offered by companies.
Most of the time the candidate gets close to only 60% of the quoted salary in hand per month. My question is what if the candidate asks only for a TDS & PT deduction in his salary and wants the rest of the amount in hand. He / she would plan for the savings, taxation, etc on their own.
How many companies would come forward for this arrangement, what would the implications be - both on company and candidate, would it help in reducing the rejections which happen bcoz of salary in hand?
Your comments please
Raghavendra
From India, Bangalore
I also came upon another reason for the offer declines, which seems to be the salary structure offered by companies.
Most of the time the candidate gets close to only 60% of the quoted salary in hand per month. My question is what if the candidate asks only for a TDS & PT deduction in his salary and wants the rest of the amount in hand. He / she would plan for the savings, taxation, etc on their own.
How many companies would come forward for this arrangement, what would the implications be - both on company and candidate, would it help in reducing the rejections which happen bcoz of salary in hand?
Your comments please
Raghavendra
From India, Bangalore
Hi Raghavendra,
This policy is still followed by amny comapies in BFSI segment. What they do, they give a blank format to the candiadtes selected along with thier CTC amt and tell them to dot the breakage themselves.
In this case they tell them the limit upto which a particular category like uniforms, etc are exempted from tax.
This is actually followed in some comapies but still those coampnies are also facing the same last minute back out problem.
Regrds,
Deepali
From India, Chandigarh
This policy is still followed by amny comapies in BFSI segment. What they do, they give a blank format to the candiadtes selected along with thier CTC amt and tell them to dot the breakage themselves.
In this case they tell them the limit upto which a particular category like uniforms, etc are exempted from tax.
This is actually followed in some comapies but still those coampnies are also facing the same last minute back out problem.
Regrds,
Deepali
From India, Chandigarh
Hi Dipali
Thanks for your inputs. I agree that it might work in some cases and might not in some cases.
coming to the IT industry, where the CTC's shown is pretty high than the actual take home, can the candidate ask the HR dept to just deduct only the PT & TDS, instead of the regular PF, Bonus, LTA, Medical, Bonus, variable, etc etc components.
This would mean that the take home would be pretty high and the candidates might be interested in getting more money in hand. What would the implication be on the hiring company and the candidate?
I have actually come across candidates whose actual hikes (in terms of take home salary) have been just some rupees. This would discourage the candidate from considering the offer.
Your comments please
Raghavendra
From India, Bangalore
Thanks for your inputs. I agree that it might work in some cases and might not in some cases.
coming to the IT industry, where the CTC's shown is pretty high than the actual take home, can the candidate ask the HR dept to just deduct only the PT & TDS, instead of the regular PF, Bonus, LTA, Medical, Bonus, variable, etc etc components.
This would mean that the take home would be pretty high and the candidates might be interested in getting more money in hand. What would the implication be on the hiring company and the candidate?
I have actually come across candidates whose actual hikes (in terms of take home salary) have been just some rupees. This would discourage the candidate from considering the offer.
Your comments please
Raghavendra
From India, Bangalore
Hi Raghav,
Agree with your Point, In IT industry we can't do so.
But yes, to make it more comfortable for the candiates we can let me make their brekage on thier on and let they themselves know what is inhand salry, aand all deduction figures.
This can make candidates more comfortable as they will be gonna have in hand salary fixed by them after breakage of CTC.
Deepali
From India, Chandigarh
Agree with your Point, In IT industry we can't do so.
But yes, to make it more comfortable for the candiates we can let me make their brekage on thier on and let they themselves know what is inhand salry, aand all deduction figures.
This can make candidates more comfortable as they will be gonna have in hand salary fixed by them after breakage of CTC.
Deepali
From India, Chandigarh
Hi,
I have encountered the same problem and Now I am not mentioning the compensation in the offer letter and I am giving the official appointment letter with salary break up on the day the person joins our company.
We should not allow more than one month period between offer acceptance and official date of joining. Also, ask the candidate to come before joining date and complete all other joining formalities. It would make them to think before jumping.
Also, while doing the shortlisting, we should keep the alternative also ready so that in case the selected candidate doesn't join, we can go for the alternate.
Regards
Balaji
From India, Hyderabad
I have encountered the same problem and Now I am not mentioning the compensation in the offer letter and I am giving the official appointment letter with salary break up on the day the person joins our company.
We should not allow more than one month period between offer acceptance and official date of joining. Also, ask the candidate to come before joining date and complete all other joining formalities. It would make them to think before jumping.
Also, while doing the shortlisting, we should keep the alternative also ready so that in case the selected candidate doesn't join, we can go for the alternate.
Regards
Balaji
From India, Hyderabad
Find answers from people who have previously dealt with business and work issues similar to yours - Please Register and Log In to CiteHR and post your query.
Gratuity - Taxation Issues.docx
Motivational issues in Ms.ppt