The Wall Street Journal had a great article this past Tuesday on how the rebounding economy is placing pressure on employers to raise wages or suffer turnover. The economic indicators are strong. Growth companies are hiring which means opportunities to move to better paying jobs is a reality for key players looking to jump ship. While most good companies get lower unemployment is good for business, a lot of companies fail to realize that not addressing the wage gap from recessionary times doesn't just go away, it leads to decisions.
People vote and they vote with their feet, if employers are careless about righting the wage constraints that impacted their business a few years ago, they will pay either way. Great employers understand the direct impact that turnover has on productivity, training costs and employee morale. In other words, to compete in the war for talent, a top grading company must be mindful that compensation is a big reason for the decision to leave.
Worth and value are in the bucket of reasons good employees stay or leave but failing to look hard what you pay people is a key ingredient in the recipe for turnover. In the end, paying your top talent their worth today is important but really understanding what that worth is may be a challenge. Top talent will find it out what their worth is but usually this involves them giving their notice to really hit you in the face.
If you have questions about wage modeling or talent strategy, contact one of our practice leaders at Connor|Caitlin.