COVID-19 affected everything for almost a full year. We saw disruptions in the workplace, the transition to remote working, and economic challenges. There are some considerations that we may not have attributed to the pandemic but are becoming big topics in employment. For example, pay rates have shifted over the last 8 months. How did COVID-19 impact pay rates, and what should we expect moving forward.
The Impact of Unemployment Benefits
There are people on either side of the unemployment benefit argument. But in any case, if someone is earning more on unemployment than they would in a new position, there is absolutely no benefit to accepting a job. As an employer, you need to work out the balance. Also, keep in mind that employees may be concerned about the cost of living, and if the salary simply doesn’t provide them with a living wage, they won’t accept the role.
There is also a category of employee right now deemed essential. While many of these workers feel grateful to have work, they may also feel exploited or concerned about the hazards of the job in this environment. The minimum wage is no longer enough to keep even essential workers motivated in the workforce.
Determining the Right Pay Rates
What is important is to work out the right pay rates for your industry, location, and the current job market. For example, with our Anserteam clients, we’re currently seeing a lot of success with roles in the $15 an hour range. This takes into account several factors you will have to determine. A staffing partner can help you use employment data to figure out your sweet spot.
New Hires and Promotions
You may also have to consider the differences between new hires and promotions. In almost all cases, it’s far less expensive to give someone a raise than replace them on the job. Depending on what you’re paying your current employees, you may need to provide small bumps to raise them to the industry standard if you plan to make any new hiring decisions moving forward.
Do you have questions about competitive pay in this job market?
Anserteam Workforce Alliance represents North America’s very best staffing agencies aligned together to deliver world-class workforce management solutions. We offer end-to-end talent services that can be customized for any size business, utilizing our Managed Services Provider (MSP) model and Vendor Management Solutions (VMS) technology. Is your organization seeking a WBENC-certified diversity partner to provide measurable results and substantial cost savings? Contact us today.