Competing in the Marketplace You might have to compete nationally to attract the best employee for some spots, while for others you can find good local candidates. Still, you have to know the market demand for the skill set you're hiring in order to negotiate compensation that works for both you and the prospect. Consequently, your reputation can attract the most valuable employees or retain the least productive. If the salary your best prospects want is out of your range, you might be able to offer other amenities that are equally or more appealing. Compensating factors, like below average house prices, magnificent scenery, an excellent school system or a distinctively appealing work environment can offset lower compensation.
Some businesses help finance a key executive's house.
Others find a position for a trailing spouse. Some offer employees exceptional empowerment and opportunities to excel creatively. Many studies have shown that salary alone does not keep the best employees, so play to your strengths. You don't want to be penny wise and pound foolish when hiring. Still, you have to determine your opportunity cost when you start with someone inexperienced vs. someone who hits the ground running.