I have been in the staffing and recruiting business for 32 years. I can honestly say, I have never seen as tight of a candidate market as it has been in 2019. With unemployment close to a historic low, it is critical for employers to take a close look at their wage scale internally.
Employers – realize where you’re at
You must stay aware of how your wages reflect in your market, and adjust as necessary to remain competitive. If you cannot adjust your wages to market levels, make sure other tangible benefits are present to attract top talent and reduce turnover. Competitive benefit offerings could include health care coverage, paid time off (PTO), flexible hours, or the ability to work from home. Other perks such as a strong culture, fun work environment, or a nice physical office space may help as well.
Eight years ago, one of AP Professionals’ top client companies asked us to perform a wage analysis for them. This firm had a “Class A” environment, but was experiencing high levels of turnover in their accounts payable area. They just could not promote their employees quickly enough because of the way their Accounting Department was structured. The controller presumed it would cost $250,000 to raise every accounts payable associate to market rate. So, they decided to keep the same wage scale and factor in the annual turnover rate into their annual budget. This will not work in 2019 and in the near future.
Wages in the current and future market
New entry level candidates are pickier than ever – and they can be. The retail and fast food industries offer $12.75+ plus decent benefits to new hires. Employers have to be competitive. Or, risk high turnover rates in a market with a limited candidate pool to back fill job openings when folks resign.
We are overdue for a business slowdown. But, this will not hit the labor market for a few years. So, my advice: do a wage analysis soon. Understand where your company’s wages measure up in the market and make adjustments as necessary!
AP is here to help with the current Rochester, NY market analysis. Call us at (585) 381-7350 or send us a note to get started.