Hawaii’s unemployment rate is currently at 2.7 percent compared to the national average of 4.4 reported in June (State of Hawaii Department of Labor and Industrial Relations, 2017). Being that unemployment is at a low for four consecutive months of no change, it is obvious that the market for the employable is slim. Therefore, candidates are likely to suggest the rate they are seeking while adding indirect compensation requests. Deciding between two similar candidates requires research and figuring out whether the company will be able to afford their salary.
A local marketing company is seeking a marketing coordinator and has two prospective candidates in hand with very similar experience. The first candidate has 20 years of related experience. Candidate one is asking for a competitive base salary including one week of extra vacation each year as part of benefits package. This candidate is also open to working a flexible schedule being available nights, weekends, etc.
The second candidate has 6 years of related experience and is also wanting a competitive base salary but asked for a company smartphone which is to be upgraded each year, and is asking for paid internet service at their home. This candidate is preferring to work remotely which is why candidate two is asking for paid internet home service. Both candidates would like to be included in the marketing company’s annual bonus plan as well.
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Assuming both candidates are asking $55,000 a year base salary with no overtime, they will be making $26.44 per hour. Direct compensation wise candidate number two would require no additional costs, whereas candidate number one will require an additional $1,057.60 a year due to the added of indirect compensation requesting an extra week of vacation each year. Other than that, direct compensation wise, both are requiring the same in base salary if we disregard candidate number one’s request.
Candidate number two is asking more in indirect compensation compared to candidate number one. Candidate number two is requesting a smart phone and a new phone upgrade each year including home internet service.
Assuming the smart phone monthly will cost $100, and the internet service (depending on which provider is available to set up in their area) we can assume $100. In total that is $200 a month and $2,400 a year to cover candidate number twos indirect compensation request for a smart phone and home internet service while working remotely.
We have two great and similar candidates asking for different indirect compensation. When it comes down to the numbers candidate number one will cost an additional $1,057.60, and candidate two will cost about $2,400 on top of their base salary of $55,000 a year. Candidate one has 20 years of related experience, whereas, candidate number two has 6 years of experience.
Although candidate number two has only 6 years of experience but similar educational and certifications as candidate number one, we are assuming this candidate may be more innovative, and fresh. Having an employee work remotely can cause less stress, stir up new ideas, have an employee more productive limiting outside unrelated work conversations with colleagues, decreasing overhead costs, and can promote employee relations (“10 Stats About Remote Work”, 2015-2017).
I feel both candidates can be great assets to this marketing company. Depending on where this marketing company is at either candidate would be a great fit. If the company has other remote workers, and compensates fairly, we can assume that candidate number two would be a better fit as they already have similar remote workers in different roles.
This would mean the marketing company is able to afford having remote workers and affording the additional $2,400 each year to compensate the candidate indirectly. However, candidate number one has the most experience, has open availability, and will cost $1,057.60 additional each year, this candidate would be the most cost efficient. There are other ways to encourage and develop employees to mold them to the role model employee they are seeking.
