According to the most recent Vistage CEO Confidence Index, “Sixty-two percent of firms reported that they were struggling to find and hire the workers that they needed, while one-in-five firms said that finding, hiring, training and retaining management talent was their top challenge.”
From the conversations I am regularly having with CEOs throughout the South Sound, I know that this pressure is real. Frankly I can’t quit thinking about it, so here are some thoughts that I would encourage each employer to ask themselves.
- How much have I increased wages over the past 3 to 5
years in each category of worker? Have I kept up with the market?
- Do I have a systematic increase in place for wages,
performance reviews and opportunity for each employee to grow, that they
can count on if they perform? What has been my exit rate in the last 18
months by category?
- A 3% increase for a $15 an hour employee = $0.45 an hr.
What is going to cause that employee to stay with me when offered $20 an hour
by a competitor or union? (This is an honest question as I may have a
winning answer). A 3% raise for a supervisor paid $30 an hour = $0.90. What
is going to cause that employee to stay when offered $33 an hour by a
competitor or union. Am I less willing to pay to keep an employee than my
competition is to get them?
- And then the final questions. If I was offered a 3% raise after a year of work would that cause me to feel appreciated and valued? Does my culture cause people to feel appreciated and valued? Do my non- wage benefits reflect appreciation and value?