Larger, well funded companies are offering employees and contract workers the highest salaries, while smaller growth-oriented companies are having to compete with the rising costs of salaries, benefits and recruiting efforts. They must carefully evaluate their salaries and benefits, offer other forms of compensation, and consider employing higher level contract workers to add value in specific areas. The smart job seekers are also aware of these conditions, so employers must be prepared before they begin recruiting. How do they compare in the marketplace with your competitors and companies with similar demographic. Professional and trade associations conduct surveys for their specific industries.
Employers can conduct their own salary and benefits survey.
Even if your company can't match the salaries being offered in the largest companies, you should know where your weak spots are. Though a competitive compensation package is a powerful recruiting tool, companies can offer other perks that may be more important to a key employee. Evaluate the position for which you are recruiting. By forcing the exercise of actually writing down the skills, experience and educational background necessary to accomplish the task at hand, you may determine several options. Offer other incentives in place of compensation, such as stock options, profit sharing and pay for performance cash-based incentives.