Market-Rate Wages Key to Sustainable Recruiting
Today’s talent is savvier than ever — candidates know what they want and are less compelled to compromise given the tight labor market. Although many factors play in to whether or not a candidate accepts a job offer, a recent candidate survey confirmed that compensation is (not surprisingly) the most important consideration:
- Good pay/compensation: 76 percent
- Good location: 51 percent
- Flexible hours: 50 percent
Workers who are already employed seem to be equally motivated by increased wages. CareerBuilder’s 2017 Candidate Experience survey found that pay was a reason cited by more than 75 percent of full-time workers either actively looking or open to new opportunities:
- 50 percent are doing so because they want a higher salary
- 59 percent say a higher base salary would make them consider a new opportunity
- 13 percent of employees would leave their current job for a raise in pay
This comes as no surprise to employers. More than three-quarters of HR managers in 2017 say they are feeling pressure to pay workers more, as more jobs are created and competition for quality workers intensifies.The business case for increasing wages
Companies are busier than ever these days, while the unemployment rate hovers around historic lows. “This can create a tough situation for employers, especially in geographic areas that already have a limited talent pool to draw from,” notes Kasey Hall, Aerotek account manager. “Although companies may be reluctant to raise pay, they also don’t want to hire less-qualified employees, or deal with higher turnover that reduces productivity.”
Hall explains that employers need to quantify the return on investment (ROI) for increasing wages, even in a competitive hiring market. Because of this, she compiles and provides third-party data such as local market analyses, per capita density reports, market-rate wage data and regional competitors’ pay scales, to ensure that her client companies can make an informed decision. By helping clients judge the true cost of low wages, she also provides support to HR managers who need to make the case to their C-suite executives.
“Providing this information shows companies that Aerotek is a recruitment partner that can be trusted to look out for their bottom line,” Hall says, leading to successful outcomes like the following case study.Helping a manufacturer secure and retain top talent
Before retaining Aerotek as a recruiting partner, a North American industrial manufacturer had struggled with finding and retaining quality employees. The company’s previous recruiting suppliers had failed to uphold the company’s hiring standards, which impacted value and performance:
- Candidates had little or no experience
- Employees received no performance feedback
- Management received no contractor feedback
- Background checks were not conducted or done maybe consistently
This resulted in a number of significant workplace challenges, including issues with attendance issues and widespread job abandonment.The Aerotek solution
Aerotek began by providing data to help the company make an educated decision to adjust pay in order to stay competitive in its industry and market. Next, Aerotek created a custom screening policy that ensured all new contract employees received background checks. The process also provided candidates a better understanding of the daily job responsibilities, skills and behaviors necessary to be successful in the role, and ensured the client was receiving the best candidates for the position. Streamlined communication with all the company stakeholders enabled two-way feedback on performance.
By utilizing Aerotek as a strategic partner, the client experienced a reduction in attrition, a stabilization of the workforce and increased productivity.The results
The company retained Aerotek and heeded the advice to increase average pay rates by $2.25/hour, which helped decrease the attrition rate from 100 percent to 18 percent. By managing its workforce more strategically, the company was able, for the first time ever, to surpass its profit goals in 2017.
Want to learn more? Contact Aerotek today.