Many computer programmers make $115,000 per year or more, and they sometimes have multiple companies bidding for their services. As HR manager for a software development firm, you want to attract the best candidates while keeping employment costs from increasing to unsustainable levels. If your competitors offer starting salaries of $115,000, which of the following is your best strategy?
A) increase your starting salaries to $175,000
B) increase your starting salaries to $200,000
C) offer $135,000 plus a 30% cash bonus
D) offer $115,000 plus a generous array of non-monetary benefits

Question

Quizplus · Accepted Answer

Increasing starting salaries to a level significantly higher than competitors' salaries is not a sustainable strategy for managing employment costs. Offering a 30% cash bonus on top of a competitive salary, as in choice C, may also prove unsustainable. Option D, offering a competitive salary of $115,000 along with a generous array of non-monetary benefits such as flexible work hours, remote work options, comprehensive health insurance, 401(k) matching, and other perks, can help attract top talent while keeping costs manageable.

Many Computer Programmers Make $115,000 Per Year or More, and They