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Recruitment: negotiating win-win pay deals in times of crisis

Recruitment: negotiating win-win pay deals in times of crisis

Recruitment: negotiating win-win pay deals in times of crisis
Posted on
March 2021

In times of crisis, recruitment is a notion that seems almost obsolete. In fact, at the start of the 2020 school year, we re talking more about redundancies than recruitment...

And yet, companies are still hiring. Whether it s to fill positions that were vacant prior to confinement, or for new skills that have become indispensable due to reorganization.

But with an unpredictable short- and long-term future, if you re going to recruit, you ve got to recruit WELL. First of all, because it s expensive! Recruitment costs the company between €3,000 and €10,000... So it s best to avoid casting mistakes!

All right, then. So, it s up to the Human Resources department or, if need be, the recruitment agencies, to find the ideal candidate. The rare pearl, with the right skills and pedigree...

Except that, as we ve already mentioned, in the autumn of 2020, through the Collective Performance Agreements, salaries are likely to fall in many companies...

Shortage of positions on the one hand, worsening hiring conditions on the other... It would seem that neither candidates nor employers are in a position of strength! But while the crisis spares no one, it s vital for business performance to continue motivating employees. And to surround themselves with the best !

So, for once, we re going to take a look, from both the candidate s and the employer s point of view, at the motivational levers needed to negotiate a salary successfully... in times when the budget has shrunk like a stone!

Motivate on results

It s a fact that salary levels will probably no longer be, for a while at least, equivalent to pre-crisis levels.

So it s time to bring into general use a form of remuneration that s widely used in the commercial sector, but little used in other fields: variable remuneration.

Adding together a fixed and a variable salary is a complete paradigm shift. Employees are no longer rewarded for their value, real or estimated but always difficult to quantify. Instead, they are remunerated in terms of objectives and results.

It also means giving meaning back to work. As we saw during the confinement, many employees questioned the relevance of daily tasks that ultimately had no societal impact.

Paying a salary based on the employee s results will force Human Resources departments to question every function in the company, to qualify and quantify the benefits.

In times of crisis, such an approach is an asset for optimizing the organization.

On the candidate side, being remunerated on the basis of clear, achievable objectives is a major factor in motivation and commitment. It s also a huge boost to an employee s performance.

Stand out on benefits

We talk benefits a lot on our blog. And for good reason: at Stairwage, we ve clearly understood that innovative and differentiating compensation policies are a key factor in engaging employees.

And benefits are definitely one of the areas that most encourages creativity! They often reflect social and societal developments.

For example, on July 28, Adrien Taquet, the French Secretary of State for Child and Family Protection, announced that he was working on extending paternity leave from 11 days to 1 month.

However, a number of companies have already taken the initiative, long before this, to give their employees the benefit of such a scheme. Avia, Kering, BETC and BlaBlaCar, among others, are already funding extended leave for young dads.

For companies, it s an element of attraction and a further enhancement of their employer brand.

For candidates, it s a reason to choose a company that stands out by promoting employee well-being. And with 63% of 18-24 year-olds in favor of longer paternity leave, the argument may echo a real shift in attitudes.

Useful skills and recognition

The word "optimization" has been mentioned. And clearly, to optimize organizations, the skills sought yesterday are no longer those that will be indispensable today.

In less than 6 months, "soft skills" have acquired crucial importance. And after all, at a time when technical skills become obsolete in less than 2 years (compared to 30 a few decades ago), what could be more normal?

The crisis will give carte blanche to innovative, agile companies, capable of modifying their DNA in depth to survive a changing world. And the employees who know how to animate this capacity to reform, to test, to take risks, will be the ones who enable them to survive.

From now on, this type of profile will be an asset for employers. But in exchange, to attract them, retain them and bring out the best in them, companies will need to reward them with recognition . Bonuses, benefits, prizes, congratulations - there s a wide range of ways to highlight an employee s contribution to the company s success.

And that s why, these days, it s going to be up to the candidate to emphasize what he or she can bring to the table in terms of innovation when negotiating a salary package.

Career management

And finally, at a time when salaries are at half-mast, companies have every interest in capitalizing on the future to attract talent. Once again, this is a reward that can t be counted in hard cash! But investing in candidates career management is a decisive factor for many of them.

In-house development, ongoing training to acquire new skills... But also, the creation of a genuine career path, inspired by the company s Job Planning and Development policy.

At the time of the job interview, little is said about future plans... However, in 2020, it s "sexier" to talk about future prospects than about a somewhat gloomy present...

For the candidate, who may have to accept a lower salary, talking about long-term investment may make him or her more willing to look ahead...

The economic crisis, therefore, is going to change the game and will mean talking differently to candidates. And yet, more than ever, companies will need motivated, committed employees who are ready to contribute all their skills.

This means that job interviews and salary negotiations will have to be conducted on a different level. Take into account different constraints. And find flexible solutions that both parties can agree on for a win-win relationship.

For both candidates and companies, new levers will need to be activated, to motivate on the one hand, and to serve performance on the other.

A whole new set of arguments will have to be developed, on both sides, in line with the new paradigms.

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