Aligning pay with the market may no longer be enough, says Randstad
- Many employers are finding that aligning pay with the overall market may no longer be enough, says Randstad US.
- The group's newest 2018 Salary Guides appear to confirm what employers have believed for some time: It’s a job seeker’s market. As a result, employers are feeling increased pressure to hire at a competitive rate, as salaries rise across most employment categories, Randstad says.
- "Organizations benefiting from the recently reduced corporate tax rate should take advantage and look to invest in their workforce since today's tight labor market means employers risk losing both current and prospective talent if they don't pay according to job seekers' expectations," Jim Link, CHRO at Randstad North America, said in a statement.
Wages have remained relatively stagnant in recent years, increasing but failing to keep pace with inflation. But with the talent gap putting the squeeze on employers, some are finding that culture and benefits are no longer enough to compete.
From Big Macs to Big Blue, the competition for skilled and unskilled labor has certainly led employers to deploy some creative solutions. New offerings like paid parental leave are coming forth, highly attractive for those becoming parents; and for those hoping to get there, some are offering fertility benefits. Others are focused on developing and maintaining a strong brand in the marketplace, as well as a culture that keep employees engaged and feeling valued.
Still, pay remains near or at the top of workers' wishlists, according to various surveys. One study, however, shows that pay perception may matter more than the exact dollar amount.