How to Calculate a Starting Salary for Your New Hire

Hiring a new team member is an exciting opportunity to bring fresh skills and perspectives to your organisation. However, determining the right starting salary can be a complex process. A well-researched and competitive offer is critical to attracting and retaining top-tier talent, particularly in specialised areas like finance, risk, and compliance.
At Elevate Partners, we understand the challenges employers face when setting a starting salary. Below, we outline key steps to ensure your salary decisions are data-driven, competitive, and aligned with your organisational goals.

Key Factors to Consider When Setting a Starting Salary

1. Define Your Hiring Budget

Your hiring budget is the foundation for calculating a starting salary. Collaborate with your finance team to map out all associated costs, including:

• Salary and benefits (health insurance, pensions, etc.)
• Recruitment costs (job postings, external recruiters, internal recruitment hours)
• Training and onboarding expenses
• Interview-related costs (travel expenses, background checks, etc.)

Clearly identifying these costs will allow you to determine how much of the budget can be allocated to the base salary.

2. Employment Type

Decide whether your role requires a permanent hire, a contractor, or a freelancer. Employment type will dictate the compensation structure:

• Permanent hires typically receive base salaries with benefits packages.
• Contractors and freelancers are often paid hourly rates or fixed project fees, which can provide flexibility while keeping costs transparent.

Elevate Partners’ contracting solutions, for example, allow employers to seamlessly manage specialist hires with clear, inclusive costs—saving time and budget.

3. Candidate Experience & Qualifications

The candidate’s experience and education play a significant role in determining salary expectations.

• Experience: Assess the candidate’s years of expertise, project scope, and responsibilities in similar roles.
• Education: Evaluate relevant degrees, certifications, and industry accreditations, such as AML or risk management qualifications.

More experienced candidates with niche skill sets will typically command salaries at the higher end of the range.

4. Industry Benchmarks & Market Trends

Conduct thorough research to benchmark salaries for similar roles within your sector and location. This ensures your offer is competitive and aligned with industry standards.
Reliable sources include:

• Specialist recruitment agencies like Elevate Partners, who provide market insights tailored to finance, risk, and compliance roles.
• Professional industry reports and salary surveys.

While platforms like LinkedIn and Glassdoor offer a general guide, they often lack the granularity needed for specialist roles. Partnering with experts ensures accurate, real-time salary data.

5. Role Location & Market Dynamics

Location significantly impacts salary levels due to differences in the cost of living and regional demand for talent. For example, salaries in metropolitan areas like Dublin will be higher than those in regional markets.
Additionally, assess supply and demand within your niche. Roles in high-demand areas—such as compliance, financial risk, and AML—may require above-market salaries to secure the best talent.

6. Align with Your Pay Philosophy

Your pay philosophy—whether you offer salaries above, at, or below market rates—should reflect your organisational strategy and talent acquisition goals:

• Above-market: Attract top-tier talent quickly in a competitive market.
• Market-aligned: Maintain a balance of competitiveness and cost efficiency.
• Below-market: Manage budget constraints but enhance offerings with benefits, flexible work arrangements, or career development.

Defining this philosophy ensures consistency in salary decisions and enhances your ability to attract and retain talent.

7. Consider the Full Compensation Package

Salary alone isn’t always the deciding factor. Benefits, perks, and non-monetary rewards can set your offer apart and appeal to candidates in competitive markets.

Key benefits to consider include:

• Health insurance (medical, dental, vision)
• Retirement savings plans (e.g., pensions)
• Paid time off (annual leave, sick days)
• Performance bonuses
• Flexible or hybrid work arrangements
• Professional development opportunities

A compelling benefits package enhances the overall value of your offer, particularly for candidates prioritising work-life balance and long-term growth.

Maintaining Internal Equity

Finally, fairness and internal consistency should be ensured when setting a starting salary. Assess how the new hire’s compensation aligns with that of existing team members in similar roles to avoid internal dissatisfaction.

Key questions to consider:

• How does this salary compare to those of your current employees with similar experience and responsibilities?
• Are there opportunities to align pay across the organisation while maintaining fairness?

Partner with Elevate Partners to Hire with Confidence

Calculating a competitive and fair starting salary is essential to attracting top-tier finance, risk, and compliance professionals. At Elevate Partners, we bring years of expertise and industry insights to help you identify, attract, and retain the best talent—at the right cost.

Need expert advice or tailored salary benchmarking?

Contact Elevate Partners today to find out how we can support your hiring strategy.