Employees… Pay, and Benefits

As the economy improves, a number of small businesses have reported not only having employees leave, but that they are having difficulty attracting a replacement. They have asked, “How much do I need to pay to get a good employee?” The glib answer is, “As much as it takes to hire and retain one.” The precise answer is considerably more involved…

The Bureau of Labor Statistics [www.bls.gov] states that in 2015 there was a 25.8% average voluntary turnover in employees. They projected that to rise by three to four percent in 2016, and higher in 2017 if the economy continued to improve. Employees will move to another company for a variety of reasons: the job offers better pay or benefits than similar jobs in the area; they are attracted by the corporate culture of the company and want to be part of it; the job offers benefits like a flexible work schedule or an easy commute, that offset pay considerations; or any number of other factors.

Employers must look at the local job market and determine what the competitive factors are. If their company is the only one of its type in the area that requires specific job skills, employees may need to commute elsewhere if they don’t work for you. They will take the cost of that commute in dollars and time into consideration when considering your job offer or determining whether to move on to another company. If, however, other companies in your area employ people with the same skills, you will have to be competitive with pay and benefits in order to attract and retain quality employees. This is especially true if new, larger employers are moving into the area, and offer higher pay and greater benefits.  Read more here: http://pgeist.blogs.ocala.com/11546/employees-pay-and-benefits/.

Speaking of Business Blog by Dr. Philip R. Geist, Area Director, Florida SBDC at UNF

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