Low unemployment numbers mean fewer people to fill your open positions. And a tight labor market is putting the focus on competitive compensation. As a compensation professional, you’ve likely been here before, but this time it’s combined with a digital uprising. This time it’s different.
Regardless of what industry you’re in, you’re most likely now competing with larger big tech companies like Amazon and Google for jobs related to data analytics, information technology, and various hourly positions. These big tech giants are hiring workers across the country in large numbers. They are paying a premium (sometimes double the minimum wage) and providing perks like working from home, flexible hours, job autonomy, education assistance, and healthcare benefits for employees at all levels to attract the talent. So, how do you compete without blowing out your compensation budget and attract talent to your doors?
To Stay Competitive, Re-evaluate Your Labor Markets
- Determine Your Local Competition: Local competitors may not be who they used to be. With Amazon announcing new distribution centers all across the country, hiring thousands of workers at a time, are they now your local competition?
- Where are most of your employees coming from?
- Are employees typically local?
- Do your employees drive to work or rely on public transit?
- Did your employees previously work for a competitor?
- When employees leave, where do they go?
- Identify Virtual Employment Opportunities: The labor market is no longer confined within physical boundaries. With the rise of online virtual workforces in this age of information, jobs that once required a physical presence may now be performed virtually. Take a fresh look at your current roles to see where work might be done remotely.
- Could any of your roles become virtual?
- Does going virtual require additional training or even additional IT support roles?
- If you do decide that virtual work is possible, is your management team equipped to oversee a virtual workforce?
- Update Labor Markets Peer Groups: Even though you are one company, you may have more than one peer group when it comes to competition for talent.
- Does the position require industry experience or knowledge?
- If you were able to go virtual, how does the role change?
- In a virtual setting, does company size matter?
- Look at What Your Brand Says: Talent is attracted by the name of Amazon and Google.
- Does your brand stand for a value that draws potential employees to you?
- Have you looked at the alignment or contrast of your external versus internal brand?
- Are you known for promoting from within?
- Do you have a reputation for investing in employees, technology and socially responsible initiatives?
Now that you’ve re-evaluated your roles and identified all of your competitors, you are ready to compete!
Check out Mercer’s Establishing a Benchmark Methodology Unique to Your Organization to get started. For even more information on compensation and rewards, visit imercer.com today.
Armed with Mercer survey data, you’re ready to compete against the big tech giants!