Employees aren't satisfied with their jobs, and while employers say it's because of the skills shortage, the truth might be simpler: higher pay and better benefits.
HRDive reports that while 92 percent of employers surveyed in the Hays U.S. 2018 Salary Guide say that severe skills shortages in their industries are weighing on productivity, employee satisfaction and turnover–with construction and the life sciences reporting the greatest shortages–the actual reason may have more to do with pay than skills.
The guide finds that the most common recruiting methods are promoting company culture (48 percent) and offering competitive salaries (43 percent), but points out that employers have to be proactive about hiring and retention amid a shortage of skills and a competitive market for talent.
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And while respondents view competitors who can pay more as their biggest threat, going so far as to suggest that the greatest cause of employee turnover is money, that doesn't mean they're upping the ante accordingly. Although 71 percent of employers did raise salaries in 2017, with 43 percent saying they did so by more than three percent, and 62 percent of managers even boosted a salary offer to woo a specific candidate, just 44 percent of employees believe they're paid at or above market rate. (The Hays report, by the way, views a raise below 3 percent as a cost-of-living increase, not an actual raise.)
Both the Hayes report and HRDive point out that employers need to think beyond salary when competing for necessary talent, especially if—as indicated by studies from both Willis Towers Watson and Aon—employers aren't planning on significant wage increases for 2018. They may have to change their minds, however, since there are actual bidding wars going on for certain prized candidates—and jobhunters have found that they can boost their income more by moving from job to job than by staying put, so even once they're hired they may not stay long.
Says HRDive, "Employers with both traditional and innovative voluntary benefits, flexible work schedules, development opportunities and paid leave, a highly valued benefit for parents, caregivers and workers of child-bearing age, will be a step ahead of their competitors."
"Competing on salary alone is never effective, and many candidates tell us they are looking for a company that meets their needs beyond a paycheck," Dan Rodriguez, Hays U.S. managing director, says in the report, adding, "Employers should make sure company salaries align with market rate, and then look for other ways to differentiate themselves in the market. From a strong culture and work-life balance, to great career opportunities, and the right benefits, employers who can demonstrate that they are a great place to work will have the talent they need to succeed."
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