HR and Wages
With more Gen Zers being hailed as one of the most tech-savvy and highly motivated generations being released into the workforce, employers are being tested in new ways, the particularly salient aspect being unrealistic salary expectations. Gen-Zs have all the access to advanced technology and these people are highly motivated. Hence, they demand higher salaries which is, in fact, sometimes, is not relevant to the current situation in the market. Their demands do not match the realities of the market. Hence, it is crucial to address this issue and this article responds to the question – how to manage Unrealistic Expectations from Gen-Z Candidates on Salary.
- Identify the Source Cause
Knowing the causes of unrealistic pay expectations would enable effective management of the same. Gen-Z job candidates are actually the first generation that grew up in a world where answers are always at their fingertips. With the click of a button, they have access to salary figures, trends in the job market, and inspiring accounts of success. Thus, often, they come to unrealistic notions about what is fair for a starting salary. Many Gen-Zers are also inspired by high-earning influencers and entrepreneurs as role models, which distorts what’s reasonable for starting salaries.
There may also be economic reasons related to student loans, housing costs, inflation, and so on that may fuel their desire for more salary. Understanding these factors can be very helpful in addressing conversation gaps with candidates.
- Clearly Defined Expectations Right at the Start
This is one of the best ways of dealing with unrealistic salary expectations. Clearly state salary ranges for your positions in your job descriptions. This allows transparency and reduces the chances of candidates coming in demanding something unrealistic. It will also attract people who have your budget in mind and help avoid wasting too much time during the interview process.
If the company is not posting its salary range, you can discuss this in the salary expectations preliminary conversation about compensation. With this topic upfront, you can avoid pain at the end.
- Teach and Contextualize
When a Gen-Z candidate comes to the table with unrealistic salary expectations, contextualize. Educate them on industry standards, the company’s budget, and the experience required for the type of role they are applying for. Explain that six-figure salaries don’t come with entry-level positions, especially in some non-profits or public service, where people may take lower pay but get flexibility, a sense of mission, or potential for career growth.
Explain to them what salary can grow with time based on performance, experience, or increased profitability of the company. Most Gen-Z applicants are interested in career progression and will be more grateful for this long-term approach.
- Discuss Total Compensation Packages
Gen-Z wants work-life balance, mental health support, and a penchant for personal development opportunities. Be sure to emphasize the full breadth of your total compensation package when it’s time to attract and retain talent. That’s where they might have expectations around base salary but aren’t doing full justice to the value of benefits like health insurance, retirement contributions, or bonuses.
Compensatory provisions, which may be structured differently, such as flexible work schedules working remotely, or even assistance in repaying student loans, can be made appealing without necessarily moving the base salary. Indeed, some Gen-Z applicants even prefer these kinds of benefits to overall pay, as these best suit their value orientations and lifestyle preferences.
- Negotiate Empathetically and Flexibly
Sit back and empathize as you go into salary negotiations and compromise. You speak to the desires of the candidate, then to the firm’s position. Don’t throw it in their face for the demands: think about creative alternatives. For example, you could pay a signing bonus rather than the salary, or you could commit to reviewing your employee’s salary after half a year based on his performance.
Building rapport and mutual respect must be the first steps. If he feels listened to and respected, he will most probably compromise on the issue he is contesting.
What Can be Concluded?
Managing unrealistic salary expectations from Gen-Z candidates means setting transparency, empathy, and education in place. At the onset, proper context must be laid to expect clear figures on the employer’s salary offerings and so on. Total compensation should emphasize meeting the needs of the candidates while remaining within the employer’s budget. In all, establishing open communication and trust can manage these expectations for the attraction and retention of top talent.
