The economy has been expanding for over eight years and economists expect continued growth for the foreseeable future. Wages are increasing and people who have been out of the workforce are returning.
Yet U.S. businesses continue to report a shortage of qualified candidates for open positions. A survey by staffing firm Adecco found nearly 50% of businesses are struggling to fill jobs. Meanwhile, millennials – who are expected to account for half the workforce by 2020 – have shown a propensity to be highly selective when choosing an employer. They are also quick to change if they become dissatisfied.
The Right Compensation Programs Motivate Employees
Attracting and retaining key employees is more important than ever. If your compensation package doesn’t reflect current industry standards, you may find your best employees jumping ship when better offers come along. Fairly rewarding your employees for the work they do motivates performance, increases morale, encourages company loyalty and, ultimately, results in better financial performance for your company.