A top priority for today's hiring managers is finding solutions to a wide range of talent challenges — from coping with turnover to difficulty finding the right candidate for critical positions. The pressure of record-low unemployment, coupled with a growing economy, has made it much more difficult for employers to find, hire and retain the right talent.
At the center of this challenge is compensation and wages, which continues to rank as the most important factor in employee satisfaction. From a past study we performed, 59 percent of employees selected salary and benefits as the most important factor in choosing an employer. The fact is that today's workers are gaining bargaining power as wages continue to rise. Not only do hiring managers need to understand the distinct characteristics of each role in order to attract the right candidates, they also need to be prepared to offer compensation that properly aligns with the responsibilities of a given role in today's very competitive climate.
of employees said salary and benefits was the most important factor when choosing an employer.
pay and retention: the critical yet often hidden link
A shortage of talent is being felt acutely across all industries by companies of all sizes, and the impact is undeniable. In fact, in a recent Randstad survey of decision makers working in the manufacturing and logistics, office and administration and finance and accounting sectors, being unable to find candidates due to the talent shortage or skills gap was the number-one external challenge they expected to face in the coming year.* Now that top talent is more valuable than ever, many professionals are beginning to look outside their company's walls for new opportunities. Research indicates that, for many workers, job dissatisfaction stems from low pay. According to PayScale's Compensation Best Practices report, only 22 percent of employees feel they are paid fairly, and a Gallup study of U.S. workers found that more than half of employees (51%) are searching for new jobs or watching for openings. That's something business leaders need to keep in mind. For your business to remain competitive, your salaries must be, too.
of employees expect to see pay raises every year in order for them to stay.
what this means for employers
Given the rate of change in today's workforce landscape, what can business leaders do to stay ahead and position their companies for growth? The right talent, the right structure, the right culture and the right compensation are essential. Leaders must work proactively to forecast talent needs in light of shifting organizational goals if the business is to meet its growth objectives.
of employees said they'd left a job in the past because they received better benefits elsewhere.
At Randstad, our goal is not only to help our clients find great candidates today, but also to position them for success in the future. We have unique domain expertise, as well as a large network of nationwide talent, and our knowledge of industry trends enables us to help you benchmark and — when needed — strategically modify pay to maximize the benefits of a wage increase. For employers considering increasing wages, we can ultimately help you understand the impact of such a decision — not only in the near term, but also on the productivity, operations and overall financial health of your organization.