Record high rates of resignations and job openings, per a U.S. Bureau of Labor Statistics report for March, are challenging employers to identify strategies to recruit and retain their employees. There are 5.5 million more vacant jobs than unemployed people. Economics 101 tells us this is a fundamental supply and demand issue that favors employees. Combined with high levels of inflation that cut into personal budgets, employees are being pushed (high prices) and pulled (high supply of jobs) to chase job opportunities that offer higher pay.
Employers are facing powerful macro-economic forces that many have never experienced before. Under these severe conditions, it is important to reevaluate the competitiveness of compensation and benefits practices to recruit and retain employees. Employers are taking action to increase the “pull” factor for applicants and to retain employees. For example, members are using the Community to discuss new benefits that assist employees with increasing costs and may prevent them from being pulled away by higher-paying jobs.
For help with the economics of recruiting and retaining employees, Employers Council offers resources and services:
Contact us today for assistance with your compensation questions.
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