You've identified the perfect candidate to fill a critical job opening, the interviews went well and now you're putting together the offer you hope will seal the deal. This can be one of the most difficult parts of the hiring process, especially when pursuing an A-player who is being courted by other firms in your industry. To make sure your offer is attractive, it's crucial you get the salary right.
But, there's a catch: The candidate will have to relocate to your city in order to take the job. Do you know how this should affect the salary you propose?
According to a recent study by mortgage information website HSH.com, the average American needs to earn about $51,000 a year to afford the median-priced home. That number alone is not enough to inform your salary offer, as real estate prices differ wildly across the U.S.
Here's a breakdown of about what it would cost to buy the median home in a few major American metros, according to the study:
- Atlanta: $37,500
- Boston: $83,200
- Chicago: $58,000
- Denver: $68,400
- New York: $86,700
- Philadelphia: $51,600
- San Francisco: $148,000
- Washington, D.C.: $78,600
To come up with these figures, the report includes principal, insurance, interest and tax expenses, and assumes the buyer has great credit, puts 20 percent down on the home and spends no more than 28 percent of income on principal and interest.
Considering these numbers, no matter where your company is based, is an essential part of putting together a compensation plan for someone who would need to relocate to join your team. For assistance identifying and connecting with top talent outside your geographic area, consider working with a global executive search firm like YES Partners.
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