Most employers know that paying a competitive salary is important. But today, the issue of pay has taken on a new significance and urgency because of an ongoing talent shortage that is growing more pronounced every year.
The Severity of the Shortage
One survey in 2020 revealed that the talent shortage is three times greater now than ten years ago. Almost three-fourths of employers are now reporting difficulty filling skilled positions.
Another study determined that in ten years, there will be a talent shortage worldwide or more than 85 million people, with a shortage of six million workers in the United States. The study found that demographics play a large role in the American shortfall, as many Baby Boomers leave the workforce, but younger generations are unable to replace them because of lack of training.
Assessing Compensation
Because of these conditions, employers need to take a hard look at compensation packages. To ensure they are attracting the best talent, companies may need to look at going beyond just offering competitive salaries, but ones that lead their industry.
While there are a number of different factors that can play a role in a person’s decision to work at a particular company, there is no disputing that pay is usually among the most important.
Just as important, pay is key in retaining workers as well.The ripple effects of employee turnover extend beyond having to fill an opening. For example, projects underway may be delayed, forcing the company to expend additional resources. The company may fall short of its growth projections. And it can affect employee morale.
These days, recruiters and hiring managers are always looking to lure top people away from their current employers with more attractive offers. And with social media, sites like LinkedIn and Glassdoor, this process is even more pervasive than in the past. Even if an employee is happy in his or her position now, they may easily leave for another company for a better salary and benefits.
The challenge for management is to keep abreast of pay scales in their industry to ensure they remain competitive. They need to constantly assess and adjust their pay scales so that they remain a company that people want to work for.
Need Help Finding Employees?
If your company is looking to fill job openings, you can count on Opti Staffing to supply the people you need. We have staffing agencies in Vancouver, temp agencies in Tacoma, temp agencies in Portland, and temp agencies in Seattle to serve any need you may have. Give us a call today.
