PayScale recently released their 2014 Compensation Best Practice Report, which reveals movement in the economy. Companies now seem to be in a position to add new talent to their workforce in order to compete in the marketplace.
Here are some important trends for employers to watch for in 2014, based on this report:
Talent Retention:This has been a rising concern for companies of all sizes. Back in 2009, retention of talented individuals was indicated as a top priority for 28% of respondents and has since doubled to 57% in 2014.
Recruiting: The proposed solution for companies in need of finding and retaining talent is to recruit high performing employees with merit-based pay in addition to offering ongoing opportunities for them to learn and develop.
Recruiting high performing employees has proved to be challenging for the 60% of respondents who responded that there is a lack of qualified applicants in supply. When going through the hiring process, past work experience is a leading factor in the decision for 40% of companies, followed by a strong skill set.
Retaining: Other companies who responded say they already have the talented workforce they need, and instead will focus on retaining them with competitive salaries and development opportunities. The top reason employees left their job in 2013 was in seek of a better paycheck.
Salary Increases: The majority of organizations (88%) plan to give raises in 2014. For more than half of these companies, the objective is to retain talent.
When it comes to salary, 75% of employers feel they have a lack of insight about the appropriate level of compensation necessary to attract and retain the right people for their organization. In addition, more than half of respondents say that their organization doesn’t offer effective training for managers to learn how to talk to employees about compensation.
Training and Development: Employers are beginning to realize that opportunities to enhance and gain new skills are now sought by employees at all levels of the organization. Some respondents stated that it is equally as important as salary for finding and retaining talent.
Future Growth: Companies of all sizes are feeling optimistic about performance in 2014. 72% are expecting financial improvements and 54% are expecting to increase in size by adding talent to their workforce.