In Ohio, many companies are failing to offer wages that allow employees to comfortably manage their financial lives. Among the most common jobs, several don’t come with pay rates that would make sustaining a family of three without food assistance a viable option. Additionally, while select employers did raise pay rates in response to the Great Recession, the increases were small enough that many of the employee gains are being functionally wiped out by inflation.
While employers aren’t responsible for inflation, declining purchasing power does impact the labor market. This is particularly true since many professionals are rethinking their careers in the light of the pandemic. Along with having new expectations of employers, many members of the workforce are changing their career paths, opting for roles with more potential or industries they perceive as safe.
For some Ohio employers, these shifts create new challenges. Suddenly, finding employees to fill vacancies is far more than challenging; it’s seemingly impossible. While it’s easy to argue that higher wages aren’t the only solution, for employers that want to remain productive and secure the best talent, it’s often the best answer.
Determining If You’re Paying Too Little for Ohio Workers
In many cases, it’s reasonably easy to determine if you’re paying too little for Ohio workers. One of the biggest clues is a significant decline in the number of job applicants or accepted offers. Generally, candidates show disproval of salary levels by avoiding opportunities at companies that are known for offering low compensation or rejecting offers they feel are lowball.
Rising turnover is another sign of trouble. When employees feel underpaid, wage-related attrition is a common response. Essentially, workers seek out opportunities as a means of securing their financial future and may exit with surprising speed when they find a suitable alternative.
Finally, research can make spotting pay issues simple. Often, it’s wise to gather data regarding typical salaries for positions similar to your offerings in your area. That allows you to directly compare what you’re offering to local norms, making it easy to determine if you’re behind the curve when it comes to wages.
How to Correct Low Wages and Attract Talent
In many cases, you can use a straightforward process for correcting low wages. Ideally, you want to bump up pay rates – either by a set dollar amount or percentage – quickly to bring salaries in line. While it may seem easier to start with one job category and then move on to another, that isn’t always ideal. There may be issues regarding perceived fairness, something that you can avoid by increasing pay rates simultaneously.
Once you’ve handled the wage increase, attracting talent gets easier, particularly if you openly advertise your salary ranges. Remember, pay is always a factor for candidates, so being open works in your favor. You’ll show that you can meet this critical need, leading to higher interest in your opportunities and a better-quality candidate.
If you need to fill vacant positions or want insights that can help you correct low wages, the team at The Advance Group wants to hear from you. Contact us today.