Why You Need to Offer Competitive Pay Rates

You might think that, with unemployment currently at record levels, employers can offer whatever they want to the masses. But you’d be wrong. We’re still seeing widespread talent shortages across all industries, especially those that depend on a steady stream of workers earning $20 per hour or less.

As the economy opens back up post-pandemic, we expect the competition for job applicants to become even stiffer. This is true even for the most severely impacted sectors, such as the travel industry, which is already experiencing a surge in summer bookings.

The Importance of Hiring — and Retaining — Good Employees

The short answer is that they add more value to your company than they cost. Competent employees will increase production and efficiency, keep customers happy, find innovative solutions, improve the team’s morale and reduce the expenses associated with high turnover and absenteeism.

Imagine, on the other hand, what would happen to your business if you hired inexperienced talent — the people who were rejected by your competition and come to you because of their lack of skills. The quality of your products and services would suffer, and so would your company’s success.

So, how do you become the local employer of choice and stay ahead of your competition? Here are the strategies Integrity Staffing recommends most highly.

Acquire Deep Local Market Expertise

Whether you outsource this research or do it in-house, it will give you the information to make informed recruiting decisions. The questions you need to answer include:

  • Local labor market conditions
  • Available talent pool
  • Local competition
  • Wage comparisons

Integrity Staffing’s consultative approach is tailor made to help our clients succeed in their job market. We take the time to really listen to their needs and understand their issues. This is critical in sourcing and hiring the right candidates for their business.

Offer Higher Wages

Let’s face it, nothing talks like money. If your mega-competitor is hiring entry-level employees at high volumes with above-average wages, there’s little choice but to increase your wages to match or exceed theirs. And do the same for your existing employees, or else you’re at risk of having them jump ship.

If a higher payroll threatens to devastate your profit margin, look for other ways to regain your balance. These might include:

  • Reduce overhead such as office expenses or the marketing budget
  • Renegotiate vendor contracts
  • Avoid paying overtime by converting more positions to part-time or temporary
  • Centralize operations for improved efficiencies

Rethink Job Requirement Restrictions

For many upper-, mid- and even some entry-level positions, it’s become a knee-jerk assumption that candidates must have a particular type of degree, years of experience and laundry list of skills. Yet, not that long ago, the role was performed just as well (if not better) by people without those things. Looking beyond your preconceptions may open up your candidate pool to some ideal employees.

If the role really requires certain skills that you can’t find, consider starting an apprenticeship program or tuition assistance for employees.

Offer More Perks

An attractive benefits package can woo employees who want more from their career than just a paycheck. Most popular with this type of employee are:

  • Work-life balance, such as working from home
  • Good medical benefits, covering mental health, parental leave and more
  • Employee Assistance Program
  • Education assistance and financial tools
  • An employer who contributes meaningfully to society

Integrity partners with clients of all sizes to provide the cost, service and scalability efficiencies they need to stay competitive. To learn more about our staffing solutions, visit our website, email us or call 1.888.446.1300.