Mar 18, 2022
A year has made quite a difference in the labor market. One of the biggest questions for employers today is how to keep up with wages and salaries constantly on the rise.
It may also be fair to say that competition for talent has broadened. For example, companies hiring customer service representatives, banks hiring tellers, and small businesses seeking reliable receptionists now have to consider wages offered by local retail & food service industry employers to ensure their wages are locally competitive.
Remote work arrangements have also opened new doors, allowing companies to recruit for talent in other locations. Highly skilled professionals and management can now flex their experience and expertise to negotiate substantially higher pay and rewards from the comfort of their own homes.
So, how can employers keep their finger on the pulse of competitive pay in today’s highly competitive labor market? The answer may be to triangulate into the pay levels by looking at three key sources:
- Reliable, published compensation reports: Data from industry associations and reputable consulting firms are great resources to benchmark pay and to get a baseline compensation rate for positions in your organization.
- Job postings: As more and more states and localities require employers to include pay rates or ranges, job postings may be one of the best real-time sources to assess competitive hiring rates within your local labor markets.
- Internal human resources teams: Insights from your company’s HR teams can include statistics on turnover, exit interview intelligence, how other employers advertise job opportunities and your recruiters have a birds-eye perspective on locally competitive hiring wages from interviewing and extending offers.
Considering market competitive pay from a few different angles can inform employers if increasing salaries or local wages is necessary to compete for talent in today’s highly competitive labor market. Employers may also discover new benchmarks and resources by using this approach to regularly monitor and keep a proactive pulse on pay.
An equally, if not more, important question employers are facing is how to retain their talent during the “Big Quit.” Evaluating employee job satisfaction, opportunities for growth and other rewards have posed many challenges to employers. Watch our March 10 webinar on-demand here, where we discuss how you can help turn the page on turnover during the Big Quit.
The information contained herein is general in nature and is not intended to address the circumstances of any particular individual or entity. Please consult with your tax, accounting or legal advisors before making decisions.
Newport Group, Inc. and its affiliates provide recordkeeping, plan administration, trust and custody, consulting, fiduciary consulting, insurance and brokerage services.