Updated: Jul 14
December 8, 2020
Even though circumstances have changes since this blog was originally written, the action items remain the same today. The war for talent will continue its pendulum swings so we must ensure we are always evaluating our compensation structure to ensure we are providing a competitive and appropriate total compensation package for our employees.
Today the Bureau of Labor Statistics released some alarming news for employers. Job openings were up again in October bringing the total number of openings in the U.S. to 7.3 million jobs! This is great news for our economy – we are growing. But it also means it is getting harder and harder to fill open positions.
The BLS also reported this month that the number of unemployed workers stood at 5.8 million. This is a difference of 1.5 million! If everyone who could work did work, we would still have 1.5 million open positions.
So, what does this mean for employers? Two things: First – finding the right candidate has been and will continue to be difficult. Skillset, cultural fit, timing, experience and pay are all areas of concern for both the applicant and the employer. If the company isn’t offering a competitive compensation package, they don’t stand a fighting chance to land that next great employee.
Second – keeping your best employees is also becoming a challenge. With so many employers looking for great people, recruiters are constantly calling potential employees to talk about their next move…your employees included. Some of the best employees can receive multiple calls a week from recruiters and headhunters! Are employers giving those top employees a reason to be looking or are they secure in their role because of the value of their contribution to the company, and the value of what they are receiving in return.
Look at it a different way. Employers are sometimes like the dreaded cell phone or cable company. The cell phone company will treat current customers like a commodity – slowing raising rates and taking away benefits but will offer hundreds of dollars worth of incentives to bring on just one new customer. This year many employers will offer raises to current employees that range from 2-5% with an average of 3.1% according to the research. However, employees changing jobs can see a bump in pay from 10-20% with the new employer. Why wouldn’t all employees start looking for a new job?
Here are three things you can do to stem the rising tide of employees leaving your organization and also attract the best candidates to your company.