The Cost of Talent Is Rising — Are You Keeping Up?

By Kevin Roth

"We want to hire him, but the $100k salary he's asking for is too high."

Well, he volunteered that he's currently earning $95k and has two offers pending at $100k. 

"I just don't believe that's market value for his background."

Market value isn't the price you believe is fair — it's the price the average consumer (i.e. company) is willing to pay for the respective product/service (i.e. employee).

In a tight labor market, the companies that land the best talent are the ones that stay ahead of compensation trends and ensure that any offers are in line with the competition.

It may not always feel great to pay above what you believe something is worth, but the alternative can be far worse when it comes to hiring.