312,000 jobs were added in the U.S. in December 2018 – 2.6 million jobs total in 2018! All these new opportunities, along with the unemployment rate being at its lowest since 1969, have caused employers to adjust compensation to attract strong talent. According to the Bureau of Labor Statistics, pay levels of hourly workers increased by 3.2% in 2018, up from 2.5% in 2017.
Given predictions for continued economic growth, despite recent fluctuations in the stock market and other concerns, employers may need to take a closer look at keeping pay rates in sync with not only what candidates are seeking, but at competitor compensation and the market trends.
If raising pay levels to attract new, fresh talent is in the plan, employers should also be cautious of causing a morale decrease in current employees, which can lead to higher turnover.
Not only do pay rates factor into compensation, employers may also get creative in terms of incentive opportunities and the metrics to qualify for those payouts, consistent performance management discussions to help employees achieve these incentives, as well as better benefits packages.
In the chart below, you will find the top factors influencing employer compensation decisions for 2019, according to Mercer:
In a nut shell, employers be should ready to stay proactive and have a strong compensation system that responds to market trends and opportunities to recruit new talent. A partnership with 4M not only means access to highly qualified candidates in your industry, it means increased productivity and profits with less time spent on the recruitment process for a stronger workforce– more valuable time and money!