Ensuring Employee Compensation is on Track
Interpretations of the good, bad or indifferent of low unemployment rates can differ greatly depending on which side of the interview desk you sit. Since November, we’ve seen a steady drop in the national employment rate to 4.6 percent in January. This 9-year low could go even further as we proceed into the year because the rate only considers candidates actively searching.
Local Employment Outlook
In Kansas, we’re already seeing lower unemployment numbers. At 2.9 percent, employers throughout the state are beginning to feel the impact. On the positive side, the economy continues to grow equating into a greater ability to enjoy a higher standard of living and more goods and services with the ability to create more employment. On the flip side, low unemployment numbers can mean a downside for employers looking to hire enough skilled workers.
For companies looking to add employees, this economic outlook signals one thing. It’s a candidate’s market where the choice of where to work and who to work for abounds, making it harder for employees to ignore a grass-is-greener mentality. For employers, this translates into a need to not only identify candidates with the right skillsets, but also actively retain existing staff. During such a market, employment opportunities are abundant and employees who are not already looking for new jobs are vulnerable to being tempted to leave by better opportunities and more money elsewhere.
Loyalty among employees continues to plummet so it pays for employers to remain aware of an employee’s perception of problems within the organization. With more options to find different employment, once-dedicated staff could be less likely to stay the course and weather changes that accompany managerial instability and floundering product lines. High turnover is not a singular issue, it creates a ripple effect throughout the organization, magnifying minor problems into much larger casualties.
With more options to choose from, there’s also the potential for the pool of candidates to become more diluted. Fewer applicants for a job could leave a hiring manager with a candidate pool that may or may not be the right fit. Longer fill times not only stress the hiring manager but also burden staff carrying out the work until the new hire. If the job remains unfilled, there also remains the potential loss of business if demand can’t keep pace.
During these times, it’s a good idea for employers to review employee compensations and other potential employment perks. The Bureau of Labor Statistics (BLS) provides general compensation tables but doesn’t consider the availability of skilled workers in a particular area. In times of high or low unemployment, Staffing Kansas City remains a great resource for employers looking for real-time wage and benefit information such as the below benefits job seekers covet.
Additional Worker Benefits
- Profit sharing
- Life insurance
- Paid vacations
- Free meals
- Company care use
- Personal time off
- Stock options
- Pension plans
- Tuition assistance
- Tuition reimbursement
This article is brought to you by Staffing Kansas City. A full-service employment agency that provides contract-to-hire, direct hire and contract employment placement services in the Overland Park, Johnson County, and Kansas City Metro areas.