To keep up in today’s job market, you must offer competitive pay and wages. Since January 2020, the average hourly rate has increased by about $3 per hour, depending on the minimum wage near you. Month over month, the average wages being paid is increasing. So, to remain competitive in your industry, retain employees, and attract top talent, you’ll need to give in to the wage-price pressure.
First, when you offer competitive pay, you are able to attract better candidates to your company. Compare what you are offering in terms of wages and benefits for your employees to what other employers in the industry are providing. This will give you the information you need to determine what salary range will make you more competitive in the job market.
Competitive pay will also help you retain your top employees once you’ve recruited them. Have a carefully constructed salary policy that will allow for regular raises and performance bonuses. This will help provide an incentive to your employees and further motivate them on the job.
Competitive Pay Shows You Care
When you are offering fair wages, it shows your employees that you will take care of them. This creates a sense of loyalty between your staff and the company. They will work harder, be more productive, and have a more positive attitude on the job.
On top of that, it will reflect positively on your brand as an employer. You will build a reputation for yourself as a company that truly cares about its employees. This will be another factor that helps draw in top candidates for open positions within your organization. People working in the industry will know your company is a good place to work.
Low Salaries Have a Big Impact
If you are paying less than everyone else in your industry, chances are your employees will eventually leave. High turnover rates have a big impact on companies. When someone leaves a job with your company, it can cost you more than twice their annual salary in lost productivity. You likely won’t be meeting your growth goals during the time you are trying to fill the open position.
The cost of recruiting and hiring someone new can be a heavy burden too. Beyond that, workplace morale can take a hit when a staff member decides to quit, especially when it is due to pay. Your employees may start considering what other options may be out there. You really can’t afford not to offer a competitive salary.
It Will Show Your Staff They Are Assets
You want to treat your employees like assets, not an expense. While they are technically the biggest expense most businesses have, they are what makes everything work the way it does. Look at increasing salaries as a way to invest more into your assets.
Learn How We Can Help Your Company
Top Notch Personnel can help you mitigate the cost of increasing your wages by helping you with recruiting, onboarding, and even payroll services. Reach out to one of our recruiters to learn more about how we can assist your organization.