Setting the right pay rate for a role isn’t just about picking a number that “feels right.” It’s a balancing act between attracting top talent, staying competitive in the market, and working within your budget. Offer too little, and you risk losing great candidates. Offer too much, and you may create long-term budget challenges.
Here are some of the biggest factors that influence compensation — and how to use them when recruiting.
1. What Impacts a Candidate’s Earning Potential?
Experience Matters
A candidate’s years in the field play a huge role in determining their value:
- Entry-Level (0–2 years): Base salary for the role
- Mid-Level (3–5 years): ~20% increase over entry-level
- Senior (6–10 years): ~40% increase over entry-level
- Expert (10+ years): ~60% increase over entry-level
Location, Location, Location
Where the work is done makes a difference:
- Major metropolitan areas: ~15% premium over standard rates
- Mid-size cities: Standard market rates
- Rural areas: Often 10% lower than standard rates
Certifications: Your Ticket to Higher Earnings
Additional credentials can justify a higher rate:
- Basic certification: ~5% increase
- Advanced certification: ~10% increase
- Master-level certification: ~15% increase
2. Do Your Market Homework
One of the easiest ways to get a starting point is to look at job postings in your industry on platforms like Indeed or ZipRecruiter. While posted rates aren’t always 100% accurate, they can help you see where the market is trending for similar roles in your region.
3. Use Candidate Conversations the Right Way
When talking to candidates, don’t ask what they’re currently earning — in many regions (including most U.S. states), it’s illegal. Instead, ask:
“Do you have a targeted wage range you’re seeking?”
Be aware that candidates might not always be fully transparent. That’s why it can help to share your target range early. For example:
- Candidate says: “I’m looking for $50/hr.”
- You respond: “This role is budgeted for $40–$45/hr.”
- Candidate replies: “Yeah, I could work within that range.”
That exchange tells you two important things:
- Whether they were serious about their initial number.
- If your range is realistic for them.
Sometimes, anchoring the conversation with your range gets you more honest answers than a direct question.
4. Need Help Setting Compensation? We’ve Got You.
At Rockstar Recruiting, we use multiple third-party compensation analysis tools to help determine competitive pay ranges. Our data is focused on the skilled trades roles we specialize in, including:
- Mechanics
- HVAC Technicians
- Fire Protection Specialists
- Millwrights
- Plumbers
If you need help developing a competitive pay package — or filling these critical roles — give us a call. We’ll make sure you’re offering a rate that attracts top talent without breaking your budget.
