Aerotek has released a new research report to highlight the compensation practices most conducive to attracting and retaining top talent.
Aerotek® Inc., a leading provider of recruiting and staffing services, today announced the release of a new research report, “Recruiting Top Talent: Investing in Quality.” Conducted in partnership with the Human Capital Institute (HCI), the global institution for strategic talent management, the research highlights the compensation practices most conducive to attracting and retaining top talent.
Employers today face a number of challenges in finding the qualified talent needed to fill key positions and help advance business goals. A perceived lack of skilled talent is often cited as one of the biggest reasons why companies struggle to find individuals with the necessary competencies. However, others challenge the skills shortage and argue that companies are simply unwilling to pay candidates enough for in-demand positions. In the report, more than half (51 percent) of respondents’ companies pay below their market industry competitors, and respondents were two times more likely to say they struggle to fill senior positions if they pay less than their competition.
“With specialized individuals and senior-level talent in higher demand than ever, a company’s ability to attract and retain top talent is a critical component in the overall success of their organization,” said Dave Poling, director of Recruiting Operations at Aerotek. “Employers should view their talent as an investment rather than an expense, with the understanding that higher compensation can lead to more qualified candidates, increased productivity, and greater levels of engagement and retention.”
In addition to the importance of compensation, other key findings from the survey include:
• Growing expectations: The increased complexity of positions, due to more advanced technologies, increased time pressure, broader job descriptions and lower headcount, is responsible for increased educational and experiential expectations for new hires.
• Recognizing talent as an investment: Increased productivity was ranked as the top advantage of hiring top talent at higher costs, and most respondents believe higher productivity is worth the higher pay. In addition, companies who pay below competitors were almost two times more likely to have high-performer turnover.
• Employee satisfaction with total rewards: Employee development programs and a generous PTO policy increase employee satisfaction after controlling for compensation. Organizations looking to add or modify their benefits may find that additional development opportunities and more PTO can lead to greater satisfaction with total rewards.
“Our research revealed a simple, yet often dismissed, aspect of talent acquisition: to attract and retain the best talent possible, organizations must be willing to pay more than their competition,” said Carl Rhodes, HCI’s chief executive officer. “If this is not possible, then companies should strive to invest in their employees’ ongoing professional development to prepare them for meeting future needs of their organization. Not only will this help the company to avoid potential later struggles for top talent, but it can also elevate the skills of the entire workforce and improve both engagement and retention.”
The research report was conducted based on a survey of 571 respondents representing global organizations in a variety of industries and company sizes. HCI also held in-depth interviews with several leading experts on the topic. Aerotek and HCI have made “Recruiting Top Talent: Investing in Quality” available for complimentary download at: Aerotek.com/RecruitTopTalent.
Aerotek® Inc., headquartered in Hanover, Md., is a leading provider of technical, professional and industrial recruiting and staffing services. Established in 1983, Aerotek is an operating company of Allegis Group® Inc., the largest staffing company in the U.S. Aerotek operates a network of more than 200 non-franchised offices throughout the U.S., Canada and Europe. For more information, visit Aerotek.com.
About Human Capital Institute (HCI)
HCI is the global association for strategic talent management and new economy leadership, and a clearinghouse for best practices and new ideas. Our network of expert practitioners, Fortune 1000 and Global 2000 corporations, government agencies, global consultants and business schools contribute a stream of constantly evolving information, the best of which is organized, analyzed and shared with members through HCI communities, research, education and events. For more information, please visit www.hci.org.
About HCI Research
HCI is a premier thought leader in the new discipline of strategic talent management with an unparalleled reputation for innovation, leadership and excellence, demonstrated through cutting-edge research and analysis. HCI Research draws from the knowledge of a large network of executive practitioners, expert consultants, leading academics and thought leaders, as well as thorough quantitative and qualitative analysis, to produce insightful findings and recommendations that shape strategy and encourage action across the continuum of talent management. To learn more, please visit: http://www.hci.org/content/research.