Is it time to pay new hires more?

Having trouble hiring? Are you losing talent to competitors or other markets? If you answered yes to these questions, it might be a good idea to evaluate how your employee wages stack up to the competition. Pay is rising across the country, and the reasons behind these increases are varied. Regardless, it has implications for your current job listings and can impact your entire workforce. Here are a few reasons why you should consider increasing your new-hire wages.

You want to lead, not follow.?

Wages vary based upon your market and industry, so evaluating the local environment is critical to determine whether your wages are comparable to your competition. But even if you find that your wages are on par with other companies in your area, you might still consider increasing your hiring wages. The staffing team at ProTech knows that today’s hiring market is incredibly competitive, so any decisions you make that give you an advantage can help you land your first-choice candidates. It’s better to set the wage level than to try and keep up with others in your field!?

You want to offset the cost of training.

Hiring employees is expensive, and the time and productivity that goes into the training process can add to the overall cost. Once you’ve integrated an employee, you want to keep them. Employee retention is incredibly cost-effective, and losing new employees can drain profits and company culture. By paying new hires well from the beginning (and leading the market in wages), you are less likely to lose them to other companies early in their career.?

Satisfied employees are more productive.

Tenured, well-paid employees create cost efficiencies for your company. Your goal should be to turn every new hire into a long-standing employee, and paying them well from the start is one way to chart that path. While paying people more on the front end may not be profitable, as they gain experience and company knowledge, the value of their employment will increase exponentially.?