How do you make equitable offers?

Making equitable offers is not only a matter of fairness and ethics, but also a key factor in attracting and retaining diverse talent. As a recruiter, you need to ensure that your compensation packages are consistent, transparent, and aligned with the market and the value of the role. Here are some tips on how to make equitable offers that will help you build a diverse and inclusive workforce.

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1 Understand the market

The first step in making equitable offers is to research the market rates for the role, the industry, and the location. You can use various sources, such as salary surveys, benchmarking tools, online platforms, or your own network, to gather reliable and up-to-date data. You should also consider the level of experience, skills, and qualifications of the candidates, as well as the demand and supply of the talent pool.

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Ashley Ortego
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IMO first step is looking at what you’re paying loyal employees, including pay methodology for compensate factors like experience, education, special skills, and longevity.

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2 Define a salary range

Based on your market research, you should define a salary range for the role, with a minimum and a maximum amount. This will help you set realistic expectations and avoid overpaying or underpaying candidates. You should also communicate the range to the candidates early in the process, so they can decide if they are interested and comfortable with the offer. Having a salary range will also give you some flexibility to negotiate and adjust the offer based on the candidate's profile and performance.

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Ashley Ortego
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Again, you should look internal first to see what your historical practices are. Once you have your “house in order,” then incorporate market data.

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3 Consider other benefits

Salary is not the only component of an equitable offer. You should also consider other benefits that can add value and appeal to the candidates, such as health insurance, retirement plans, bonuses, stock options, paid leave, flexible hours, or remote work. You should tailor the benefits package to the needs and preferences of the candidates, as well as the norms and regulations of the industry and the location. You should also be transparent and consistent about the benefits you offer to all candidates, and explain how they are calculated and distributed.

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Ashley Ortego
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Be true to your current talent. Make sure they are first to receive any enhanced benefit offerings. Regardless if you are backfilling due to lack of retention or scaling up new positions, employers should foremost consider internal equity. Re: Equal Pay Act 1963 “Equal pay for equal work”

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4 Avoid bias and discrimination

One of the biggest challenges in making equitable offers is to avoid bias and discrimination based on factors such as gender, race, ethnicity, age, disability, or sexual orientation. You should be aware of the potential sources of bias, such as anchoring, halo effect, or confirmation bias, and take steps to mitigate them. For example, you can use standardized criteria and tools to evaluate candidates, avoid asking for salary history or expectations, or use blind hiring techniques. You should also educate yourself and your team on the legal and ethical implications of making unequal offers, and foster a culture of diversity and inclusion in your organization.

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5 Review and monitor your offers

Finally, you should review and monitor your offers regularly to ensure that they are equitable and competitive. You can use metrics such as pay equity ratios, offer acceptance rates, or turnover rates to measure the effectiveness and impact of your offers. You can also solicit feedback from candidates and employees on their satisfaction and perception of your offers. You should also be open to revising and improving your offers based on the changing market conditions, best practices, or feedback.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do you make equitable offers?

1

2

3

4

5

6

1 Understand the market

2 Define a salary range

3 Consider other benefits

4 Avoid bias and discrimination

5 Review and monitor your offers

6 Here’s what else to consider

Recruiting

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How do you make equitable offers?

1

2

3

4

5

6

1 Understand the market

2 Define a salary range

3 Consider other benefits

4 Avoid bias and discrimination

5 Review and monitor your offers

6 Here’s what else to consider

Recruiting

Rate this article

Thanks for your feedback

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