Employee Retention, Recruiting News, Salary & Benefits

Compensation Is Key for Attracting and Retaining Top Talent

According to the Bureau of Labor Statistics’ (BLS) June 2018 Employment Situation, the unemployment rate has risen 0.2% for the month of June, making the new rate 4.0%. Unfortunately, it looks like our record low unemployment numbers may become a thing of the past, which is good news for employers looking to attract workers!Compensation

The BLS reports that the number of unemployed persons increased by 499,000 to 6.6 million. In June 2017, the jobless rate was 4.3%, and the number of unemployed persons was 7.0 million. Job gains occurred in professional and business services, manufacturing, and health care, but employment in the retail industry has declined.

While the numbers may have increased slightly, employers are continuously searching for job candidates in any way, shape, or form. This also means keeping on temporary, summer workers for full-time positions once the season has ended.

“Summer hiring is at record levels, and with a shortage of skilled workers, many employers may be asking summer workers to stick around,” said Randstad Sourceright CEO Rebecca Henderson in a statement on the BLS report. “Employers are increasingly using summer hiring as a way to try out employees and turn the best seasonal talent into year-round, permanent or contingent hires.”

Another way to attract talent is to offer competitive wages and benefits. We’ve preached compensation and perks in the past, but with the war for talent still raging, we’ll continue to drive this point further home. Another interesting fact from the June Employment Situation: The average hourly pay has increased by $.05 cents, making the new average rate $26.98 per hour.

More Money, More Problems … for Employers

For employers and hiring managers looking to attract and retain talent, compensation remains key. The late rapper Biggie Smalls once sang about more money, more problems; but in this case, the employers  will face greater challenges if they aren’t offering a competitive wage.

According to a new Office Team survey, 44% of respondents said they’d leave their current job for one with better pay. In terms of gender, 47% of women would resign if offered more money elsewhere, compared to 40% of men. Compensation was the most cited reason for leaving a job; other reasons for leaving include:

  • Leaving for a company with a higher purpose/stronger mission (12%)
  • Employee doesn’t feel appreciated (12%)
  • Employee feels bored/unchallenged by the work he or she does (12%)
  • Employee’s commute is too long/wants something closer to home (7%)
  • Corporate culture is not a fit (7%)
  • Employee is unhappy with his or her boss (6%)

“Employees want to be compensated fairly and feel challenged and fulfilled in their jobs,” said Brandi Britton, a district president for OfficeTeam. “If higher pay is the primary reason for considering another position, professionals should first see if there is an opportunity to discuss a wage increase in their current role. Employers may be open to negotiation if it means keeping a good worker.”

Negotiate Salary but also Highlight Benefits Offerings

If you’re looking to negotiate salaries with a job candidate, the BLS has data that showcase the private employer costs for employee compensation among the four regions of the country. By knowing the total cost of your employees’ compensation, you’ll be better equipped to handle a salary negotiation from a prospective worker.

Earlier this year, Paula Santonocito offered these tips on negotiating salaries with job candidates. Santonocito also explained the importance of showcasing your company benefits in the negotiation, saying, “don’t forget to mention other benefits that have a less obvious dollar value.” These benefits include:

  • Telecommuting opportunity, even if part-time
  • Half days on Fridays during the summer
  • Free snacks

Santonocito adds, “Will you have to give a little, if the candidate wants more money? Probably. But if you show how much your company already offers, you will take the focus off take-home pay and get the candidate to look at overall compensation.” Because, again, compensation is key!