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In addition to recruitment costs, salary offsets for employees who live in areas with a lower cost of living could represent a savings on the balance sheet over time. For example, a hire in California may command a $100,000 salary, but a comparable hire in Tennessee may only cost $60,000.
Of course, there’s always the option of raising salaries commensurate with inflation. However, from employers’ perspective, the cost of living doesn’t necessarily equate with the cost of labor – and it’s the latter that determines salaries. These days, it’s not just a better salary that motivates employees to make a move.
Anyone involved in hiring and retaining employees is torn between important and seemingly contradictory objectives: Address employees’ pain and concerns about the increased cost of living so you can prevent them from disengaging or leaving the company in search of a higher salary elsewhere. ( The Great Resignation is ongoing, after all.).
Let’s take a closer look at salary compression as well as how to spot, resolve and prevent it from reoccurring in your company. What is salary, wage or pay compression? Asking for a job seeker’s salary history won’t help much, either, especially if a prospective hire knows they can find a higher paying job elsewhere.
Grant autonomy and flexibility There’s a direct link between fulfillment and feelings of empowerment and trust from leadership. If possible, introduce more workplaceflexibility to give employees the balance they crave. According to the PwC Putting Purpose to Work survey , 83% of U.S.
Demands for greater workplaceflexibility have risen. Compounding the uncertainty of the current workplace, it’s unclear whether these trends will persist if an economic downturn occurs. Download our free magazine: The Insperity guide to employee engagement. There are roughly 10 million job availabilities in the U.S.
When all other things are equal in terms of salary and benefits, culture is the big differentiator. Employees desire more workplaceflexibility to preserve their wellbeing and enjoy a more balanced lifestyle. What spurred this realization? For starters, generational differences in tenure.
Download our free magazine, The Insperity guide to HR outsourcing. Among their many valuable benefits, in-house HR teams and PEOs play an important role in directly impacting some of the major factors influencing employees’ decisions to leave or stay, as well as supporting management in deploying a successful employee retention strategy.
Could increases in staff pay be in the form of performance bonuses versus raises in base salary? For more guidance on how to not only survive but thrive during a season of change, download our magazine: The Insperity guide to managing change. A PEO can discuss your options with you regarding talent-related expenses.
Anyone involved in hiring and retaining employees is torn between important and seemingly contradictory objectives: Address employees’ pain and concerns about the increased cost of living so you can prevent them from disengaging or leaving the company in search of a higher salary elsewhere. ( The Great Resignation is ongoing, after all.).
In addition to recruitment costs, salary offsets for employees who live in areas with a lower cost of living could represent a savings on the balance sheet over time. For example, a hire in California may command a $100,000 salary, but a comparable hire in Tennessee may only cost $60,000.
And, with the prevalence of remote work, many employees have become accustomed to greater workplaceflexibility that enables them to enjoy increased autonomy over where, when and how they work as long as they meet deadlines and quality standards. If so, is their salary still appropriate or are you underpaying them?
Although most of the categories below can be included in a retention strategy, the big three to think about are: Competitive salaries and benefits – Review your salary structure , bonus programs employee benefits and other employee recognition programs to see where you have room to make improvements.
These could include any number of services or programs that enhance employees’ quality of life and working conditions, ranging from educational assistance to achievement awards and options for greater workplaceflexibility, including remote work. Managing employee benefits So, how do you: Select the right benefits for your workplace?
And, with the prevalence of remote work, many employees have become accustomed to greater workplaceflexibility that enables them to enjoy increased autonomy over where, when and how they work as long as they meet deadlines and quality standards. If so, is their salary still appropriate or are you underpaying them?
What is driving workplaceflexibility? Salary and benefits are still important, but higher numbers of U.S. employees cite their physical and mental health, wellbeing and work-life balance – directly associated with workplaceflexibility – as their top concerns. Benefits and challenges of a flexibleworkplace.
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