Candidates will turn down a terrific pay plan offered to them or ask for a lot more base salary if they don’t understand, or worse they misunderstood, the variable portion.
Present a pay plan like we do and you will end this problem !
Address variable compensation with:
- Show candidate what the pay plan will yield based on the trailing 12 months .
- Then let them know that you are looking for an improvement, (let’s go with 10%). With a 10% improvement your variable will be $X +
- Over perform at 15% and variable will be $X ++
Now your candidate will understand the base and variable and can do accurate mental calculations. If they are a high performer they will see themselves performing at the higher level.