Article Contributed by Barbara Piuccu
“The Fallout is that the bargaining power has shifted in the direction of the labor force and it doesn’t look like it’s going to shift back anytime soon. In order to attract and retain talent in 2022, employers need to up their game.”
-Payscale’s 2022 Compensation Best Practices Report
Chances are most employers would agree that this statement is true and ask the question, “What more can we do?” There have been pay increases, hiring bonuses, retention bonuses and spot bonuses. What else can be done? Underlying in that question is the issue of how can an employer differentiate themselves from the competition for labor.
There is no magic for the employer. The answer may rest in a couple of good old fashioned employee relation methodologies; understand and listen to your workforce and solid planning. . . all within the tenant of Total Rewards. The five components of Total Rewards are Compensation, Well-being, Benefits, Development and Recognition.
Compensation
High-demand and Hot-skills jobs. The list of what jobs and skills are in demand seems to increase as each month passes. Determine what critical skills and abilities are needed to meet strategic goals.
Living wage v. minimum wage. A living wage is a measure of basic needs and avoids poverty. A minimum wage is a measure of basic pay and meets legal obligations.
Pay Data and Benchmarking. Plan and budget to invest time and financial resources to obtain credible and relevant pay data. Participate in reliable industry and association salary surveys in order to receive the pay data free of charge.
Pay transparency is communication. Does your workforce understand how their pay is set? Do managers know how to talk about pay?
The year 2022 seems like a catch-up year for many projects and initiatives, but perhaps it is truly a set-up year for projects and initiatives. Now is the time to look forward with updated and new perspectives on pay philosophy, strategy and equity.
EANE’s 2022 Southern New England Compensation Survey is currently open for participation. Back by popular demand is our Compensation Discussion Group Series beginning on May 18, 2022. Please email me at [email protected] if would like to participate in either program. I hope to hear from you and am happy to answer any compensation questions that you have.