If you’re running a software business, then the importance of getting access to the right skilled engineers can be difficult to overstate. This applies in particular to Software as a Service – since technical issues can disrupt the service in question, and ultimately undermine the reputation of your business.
Recruiting and retaining the right engineers is, therefore, critical. Let’s take a look at a few factors that will help you to do just that.
Understand Market Salary Benchmarks
Modern salary benchmarks will allow you to determine exactly how much you need to offer. They will weigh a range of factors, including skillset, experience, and location. In a world of hybrid and remote work, location is not as important a factor as it once was – and you might be able to offer slightly less by granting the ability to work from home.
Factor in Skill Level and Role Complexity
Of course, the more complex and demanding the role, the more important it is that you find someone with the specialised skillset to match. Look at exactly what projects your prospective hire has been involved in, and think about tailoring the salary to match.
A formal pay structure will help to make this easier, by dividing your workforce into distinct tiers. However, this approach might lead to a lack of flexibility, which will ultimately make it more difficult to hire the staff you need.
Include Competitive Benefits and Equity Options
You don’t need to compete with your rivals on salary alone. In some cases, your would-be engineer will place a greater value on things that don’t cost your business as much. These might include the aforementioned remote work options, as well as things like health insurance, a pension, and equity. Of course, it’s also a good idea to ask your hires what benefits they’d like – it might be that you can come to an arrangement.
Adjust Salaries for Location and Cost of Living
We’ve already mentioned that the location of your new hire should inform the salary. Specifically, you should look at how much it costs to live in a particular place. Regional disparities will help you to zero in on the market rate. An employment cost calculator will help you to be as specific as possible in assessing these costs.
Conduct Regular Compensation Reviews
If you want to retain your prized employees, then you’ll need to regularly review their salaries, and make sure that you’re being competitive. The tech industry is especially volatile, and vulnerable to new disruptions. Review your salary structures frequently, and you’ll stand a better chance of fending off the competition. This is one area of business where complacency can be disastrous.