Faced with the need to fill open positions in a razor-tight job market, employers are taking extraordinary steps to meet the challenge. One of the most common involves boosting compensation for new hires. Whether that comes in the form of a higher starting salary, a signing bonus, or some other method, new employees are increasingly cashing in when they accept a position.
That strategy is great for someone exploring an opportunity, and it can be beneficial to companies desperate to attract top talent. But there’s another group of workers that see the situation differently: the existing staff. If employers don’t take similar steps to acknowledge the employees they already have, they may soon find those staffers heading for the exits.
Pay inequity is a disaster waiting to happen
It’s a scenario that’s playing out daily in the workplace. Companies are being generous to the professionals they’re hiring without also adjusting salaries for the workers they already have. That’s a slap in the face of the current workforce, which has persevered through two years of the pandemic. Can you blame them for feeling they’re being treated unfairly?
The end result is that just as an organization starts to beef up its staff with new hires, the existing employees become angry and disillusioned, and eventually leave their jobs – putting the company right back where it started.
Addressing pay equity and employee retention
Employers need to recognize that the best recruitment strategy is retention. By keeping your top performers engaged and making them feel valued, they’re more likely to stay. And that “ounce of prevention,” in this case, is worth far more than “a pound of cure.”
The first step is to be proactive. If employers are raising salaries for new hires, they need to do the same for those already in house. Barring any special or unique skills, it makes no sense for a newly hired employee to be paid more than someone who’s been on the job, is productive, and contributing to your company’s success.
In addition, consider conducting “retention interviews” with the current staff to find out how they view the organization, what they like about their role, and what could be done to improve either or both; expand your employee referral program; and ask some of your key staff members to help with recruitment by serving as ambassadors for your company.
A strong employee retention program will go a long way toward supporting your recruiting efforts. The experts at Alaant work with great companies every day on important workplace issues, including building and implementing a retention strategy. Want to learn more? Contact us today and let’s get the conversation started!
