At
the start of the year, employers were locked in fierce competition to secure
the talent considered critical to growth. As has long been the case, salary was
a key determinant in attracting and retaining that talent. Today, the
battlefield has been upended. Many businesses are more focused on survival.
Talent discussions have shifted to layoffs and pay cuts. In times of
turbulence, how important is salary as an incentive to attract and retain the
best talent? Perhaps a more fundamental question is “How important is it to
secure the best talent?” If employees truly are a company’s most valuable
assets, then protecting those assets should always be a priority.
A
Focus on Talent Is Always a Smart Strategy
Imagine a job market with millions of people
out of work, where those employed consider themselves lucky to have a position.
Sound familiar? It is eerily similar to the labor market of a decade or so ago
when businesses and workers were struggling in the aftermath of the Great Recession. We
learned then that those businesses that bounced back fastest seized their best
opportunities for growth. They planned carefully, took calculated risks and invested
in critical assets, especially people.
Be
Prepared: The Competition for Talent Will Be Fierce
With an incredibly robust supply of talent in
the market, you might think it would be easy to fill open positions. In fact,
the opposite is typically true. When more people apply for a job, the candidate
selection process can take far more time, energy and focus. More importantly,
however, lots of businesses will be competing for top talent. To secure the
best, you need to know what candidates care about and what motivates them to
select one job over another.
Money Still Matters
Most
For more than 20 years, Spherion has been
tracking shifting trends and changing attitudes in the American workforce
through its Emerging Workforce® Study. One of the most consistent findings of
that research is the continuing importance of compensation as a motivator to
attract and retain talent. Despite all the work that has been done by employers
to provide a supportive corporate culture, growth opportunities, better
work/life balance, attractive perks and a wide range of benefits, money remains
the most compelling enticement that drives employees to join an organization and to leave it.
Last
year, a record number of employees left their jobs, according to the Bureau of
Labor Statistics. The number one reason for doing so: compensation. The
prevailing wisdom is that changing jobs can have a far more positive impact on
personal finances than waiting around for a raise from a current employer. In a
period when the average annual wage bump hovers around three percent, a job
change can bring a hike in pay of up to 15% or more.
Arm Your Company with
the Intelligence to Compete for the Best Talent
Compensation has become table stakes in talent
competition, regardless of whether talent is readily available or in short
supply. Even in a buyers’ market, candidates want to be fairly compensated, and
they expect prospective employers to be transparent about pay. That is why we
closely monitor compensation trends for our clients. We compile salary ranges
for hundreds of positions across multiple professions and markets across the
U.S. We update the data on a quarterly basis to ensure compensation strategy is
always aligned with current market rates and priced to meet candidate
expectations. Armed with this intelligence, Spherion clients have the insights
they need to compete more effectively for talent in any market.
We continue to monitor compensation trends closely. To stay up-to-date with the latest findings, reach out to your local Spherion office.