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Compensation research is a tried and true practice of keeping labor costs in control and on budget, looking at how neighboring organizations approach compensation of employees of similar positions. Benchmarking your organization against a market average helps evaluate the organization's compensation philosophy and actions, in the hopes of keeping employees satisfied and invested.
As 2021 progressed, the demand for higher wages in the midst of a talent shortage disrupted the best intentions and budgets of many organizations looking to hire individuals. Organizations found that in order to obtain talent, they had to increase starting wages for new employees. MRA's Pre-employment and Hiring Practices Hot Topic Survey indicated that over half of organizations have experienced pay compression of existing employees as a result of increased market values of new employees. However, base pay is just one part of the equation that has needed increased attention.
Companies are reevaluating their total rewards package in a more employee-centric environment. It’s not a benefit if the employee doesn’t think it is a benefit, so what are they looking for? Answering that question gives employers a huge advantage in recruiting and retaining talent.Jim MorganVP, Business Development & Workforce Strategies, MRA
