Upper Saddle River, NJ (PRWEB) May 24, 2017
According to Trading Economics, the current unemployment rate of 4.4% (as of April 2017) is at its lowest since May 2007. While low unemployment makes for good press, its impact needs to be evaluated against the effect on businesses.
While the current rate indicates strong employment by US workers, one result to businesses is the dearth of available applicants, which means they will have to broaden their search parameters and consider relocation of qualified applicants, a cost that may be overwhelming, particularly to a small business. Adding to this phenomenon is the additional pressure this puts on wages; the simple concept of supply and demand - fewer applicants result in higher pay. This further compresses on salaries of current staff, whose salaries may be lower than new employees coming in.
Ideally, companies will want to retain their current, qualified staff, which they have cultivated over time. Ensuring that compensation and benefits programs are competitive, and the value of the total rewards program is well communicated, will serve to support retention of key employees. Having a strong compensation structure, where pay increases and incentive opportunities are correlated to performance, will allow a company to nurture high performers, and encourage other team members to push harder. Culture plays a significant role as well in a company's ability to attract and retain employees – highlight your strong points to ensure employees continue to want to stay on board. Taking a proactive approach to ensuring the best employees stay with the company will provide an edge against competitive pressures.
About Compensation Resources, Inc. (CRI): CRI provides compensation and human resource consulting services to mid- and small-cap public companies, private, family-owned, and closely-held firms, as well as not-for-profit organizations. CRI specializes in executive compensation, sales compensation, pay-for-performance and incentive compensation, performance management programs, and expert witness services.
Paul R. Dorf, APD
Chairman & Managing Director
Compensation Resources, Inc.
877-934-0505 • Fax: 201-934-0737