How do you redefine unemployment in an era where the talent shortage is widening, and the Great Resignation is still in full swing?
The labor market has been nothing but tumultuous in the last few years. The pandemic, the Russian invasion of Ukraine, accelerating inflation, and supply chain woes have left a dent in workforce development.
Talks of a looming recession have also been rampant in many financial markets. Worse, big tech companies have implemented significant layoffs and hiring freezes in the latter part of 2022.
The Tech Hiring Freeze
Tensions in the tech sector rose when several big tech companies announced massive layoffs – perhaps one of the biggest scares regarding employment security. These companies included familiar brands such as Google, Apple, Meta, Twitter, Microsoft, and many others. Twitter laid off 30 percent of its workers, while Meta streamlined its labor force by 13 percent.
Apart from the layoffs, these companies also announced hiring freezes. Apple continued hiring for its research and product development team but ceased the entry of any new hires in its other departments.
These layoffs and hiring freezes shook many economists and analysts and clipped whatever optimism was left in the labor market last year. Of course, this also dampened employment security among many workers while these former employees also added to the unemployment rate of the US workforce.
Nevertheless, a study from Gartner opined that while these layoffs and hiring freezes contribute to a rise in the unemployment rate, they do not reflect, in any way, the actual state of the tech industry. Labor market information and accurate labor statistics in the tech sector need to be revisited to get a more authentic picture.
The Gartner study emphasized the phenomenon that most prominent tech companies implemented layoffs and hiring freezes not because of a bearish tech sector but more for sustainability. 80 percent of tech CEOs will be investing heavily in product development in 2023, as it did in 2022.
Unemployment Redefined
Simply put, many of us understand unemployment as a phenomenon when a member of the labor force does not have gainful employment. Furthermore, to effectively measure unemployment, we must look closely at the current labor force.
The labor force, in turn, refers to people who want to and are qualified to work. It typically comprises individuals at least 16 years of age who are currently employed or have been searching for employment in the last four weeks.
You are employed if you have a full-time or part-time job, are self-employed or are gainfully employed in a family business. In addition, you are still employed even if you are on sick, holiday, or maternity leave.
Other members of the labor force who do not fall into the mentioned categories are considered part of the unemployment rate of a state or a country in general.
This is where it gets more complicated.
Since the unemployment rate is a percentage of the total labor force, what do you make of the case of Carrie?
Carrie was formerly employed in one of the big tech companies based in an emerging tech hub in North Carolina. Unfortunately, she was laid off in the middle of last year and immediately started looking for another job. She has engaged in various workforce services, responded to job posts over the internet and other online services, and attended job fairs in search of a new employer.
Unfortunately, she has grown frustrated and discouraged in looking for a new job because none of her active job offers seem to match what Carrie has been looking for.
Now, in measuring unemployment, it can be seen here that though Carrie is part of North Carolina’s unemployment rate, it does not necessarily mean that she is unemployed because there are simply no available jobs for her. Carrie is unemployed because her work search requirement does not match the available jobs. Any potential employer still needs to meet their priorities and preferences.
There is a real insight when one looks at Carrie’s situation. She is a typical representation of a lingering era in the labor market. This is why despite the layoffs and hiring freezes made by big tech companies, there are still two job vacancies per unemployed individual.
The truth is that many eligible workers would remain unemployed for a significant amount of time until they find an employer willing to give them what they want.
This candidate-driven labor market is something that every employer, hiring manager, and job seeker should genuinely understand so that they know how to respond to the demands and eccentricities of today’s ever-changing labor market.
Unemployment in the Midst of a Talent Shortage: What Gives?
The economic security absent when one is unemployed cannot be remedied by temporary solutions such as unemployment compensation and benefits, insurance, or any form of unemployment assistance. While these may be convenient at the onset, you need to understand that these are just palliatives to a problem that should have a long-term solution.
One perennial issue worth looking into is the unprecedented job mismatch between the sheer number of open jobs waiting to be filled and the qualifications of people looking to fill these jobs.
This large gap has trumpeted a loud need to hire workers based on skills and not just college degrees. Moreover, many employers and hiring managers have started to hire based on skills, qualifications, and interests instead of just looking at academic credentials and years of work experience.
The shift to skills-based hiring also casts light on tech workers, especially in the United States, who went with the Great Resignation hoping to alter their career trajectory completely. These workers possess transferable skills that would be useful for any employer considering hiring them for a new role.
Moreover, it is also worth noting that today’s world of work is characterized by two all-encompassing keywords – remote and digital. With particular emphasis again on the United States, this remote and digital world makes good use of workers with a high propensity for learning and upskilling.
Gone are the days when universities and colleges used to be the gatekeepers of knowledge and skill. Today, your work search will only be productive if you can show what you can do and not just what you have already done.
Most importantly, a highly skilled but currently unemployed worker may only see the light of day when hiring managers become willing to reorient their hiring strategies to make way for this emerging era of skills-based hiring. This is one of the most crucial ways of ending unemployment, mitigating the skills gaps, and achieving lasting employment security.
Are you currently an unemployed worker needing help with your job search? Look no further and turn to the Fox Search Group. Let us help you choose the best employer to guarantee absolute employment security.
Let the Fox Search Group give you authentic employment service. Talk to us today!
Have you ever thought about offshore hiring but are still determining if it suits your company? Or have you decided to do offshore hiring but need guidance on how and where to begin?
As 2022 comes to a close and companies brace for what 2023 has in store, many businesses and organizations are trying to weather myriad challenges when hiring top talent in the tech sector.
Talent Shortage in 2023 And Beyond
As technological innovation continues at breakneck speed, it inevitably creates a need for skilled tech talent to build and maintain existing and emerging digital technologies.
Despite high-profile layoffs from big tech companies, many CEOs and hiring managers attest to the fact that top tech talent is still a challenge to come by. A Gartner survey revealed that the talent shortage remains one of the bottlenecks for many tech companies to the adoption and maintenance of emerging technologies. Many companies have singled out the talent shortage as the top barrier for their company to go full blast in digital transformation.
This is why some companies have come to rely on offshore hiring to mitigate this lingering talent shortage.
Offshore Hiring: The New Mainstream?
Offshore hiring refers to companies hiring and forming a team of workers from overseas. Though it already existed as a hiring practice even before the pandemic. This went further into the mainstream when the workforce shifted to remote work.
Despite being a considerable disruption, many employers and hiring managers still feel more confident about delegating responsibilities and daily tasks to a human workforce than an AI counterpart.
So, how prevalent has offshore hiring or staffing become nowadays?
A report from Deloitte revealed that offshore staffing will be a $6.8 billion industry in 2023. Furthermore, a similar Gartner survey showed that 80 percent of hiring managers and company leaders had increased their offshore staffing budget by at least 5 percent beginning in 2020.
Here in the US, it is already a fact that many companies have come to rely on offshore hiring. Sixty-eight percent of companies in the US are engaged in offshore staffing. On the other hand, in the UK, 48 percent of companies have likewise engaged in offshore hiring.
The truth of the matter is that offshore hiring has indeed become mainstream.
Benefits of Offshore Hiring
There are plenty of reasons why more and more US-based companies have made offshore staffing a salient solution to their hiring challenges. Here are just some of the myriad benefits of offshore hiring:
1. Low Labor Cost
This is the top reason that makes offshore hiring a winner, especially for startup companies whose owners are very keen on growing their companies.
Offshore hiring gives your company access to a virtually limitless pool of global talent, with lower wages than in more developed nations such as the US, UK, Canada, or Australia.
2. More Savings for Your Company
Since your company will be able to save on labor costs and even office space as your offshore staff can work from anywhere. You stand to save more financial resources, which you may use in other critical areas of the business, such as infrastructure, digitalization, or talent training.
3. Round The Clock Business Operations
Another boon for companies with offshore staff is that the organization can push for continuous business operations since your team operates under multiple time zones.
Because of this, you are sure that your daily operations remain unimpeded even when sleeping. Workflow remains continuous despite inclement weather in one area, sociopolitical instability in certain cities or countries, and other usual disruptions experienced by companies whose workforce is concentrated solely in one geographical location.
4. Increased Organizational Sustainability
The challenges of scaling up can be overwhelming, especially if you are running a startup. This is especially true when hiring talent. You need to balance skill and the financial investment of hiring a highly-skilled employee.
Offshore hiring can streamline this because you can have a more diverse pool of talent with a broader range of financial investment. You can hire tech talent proportional to how much you can pay them.
5. Gain Access to New Markets
Companies that engage in offshore hiring eventually open their organization to new markets.
Your offshore staff may understand regional and global trends, risks, and untapped opportunities better. They can help you identify markets where you can expand and open new labor markets for you and your business. They can also guide you in tapping more unique markets to introduce your products and services.
Offshore Hiring in the Tech Sector
Suppose you are seriously considering offshore hiring for your company or organization; what sectors in the tech industry are ideal for offshore hiring? What countries must you consider in each of these sectors?
1. Software Development
Tech services company Commit recently conducted a study that forecasted software development vacancies filled through offshore hiring would expand by as much as 70 percent in the coming year. Big tech and retail companies such as Coinbase and Shopify have hired via offshore staffing en masse this year, specifically in roles relating to software development.
The days of opening secondary offices and satellite headquarters in cities outside the US are now considered relics of a bygone era. Offshore hiring has gone mainstream, and most companies have hired software developers from countries like India, Ukraine, Poland, Brazil, South Africa, Mexico, Malaysia, and Argentina.
Since competition for competent software developers remains stiff, not only in the US but anywhere in the world. As a US-based employer or hiring manager, prepare to offer additional perks to your offshore employees, such as paid time off, flexible working hours, and performance bonuses.
2. Information Technology
If you find it very challenging to hire top talent to fill your vacancies in IT, then offshore hiring may be your next best bet.
Offshore staff may fill IT roles such as computer network architects, computer systems analysts, database administrators, hardware engineers, and information systems managers.
Demand for data analysts, for example, is consistently increasing. Data from August of this year showed that 68.6 percent of all companies need to add at least one more data analyst to their IT teams. Some companies actually need to fill entire teams and even departments with data analysts.
In this regard, where should you look as an employer or hiring manager?
Consider countries like Mexico, the Philippines, and Bangladesh, as well as Latin America’s vast pool of IT professionals to fill in the gaps.
3. Tech Support
Tech support roles are essential in the after-sales process and in ensuring customer loyalty and retention. Along with technical skills to mitigate technical concerns, tech support staff must also be excellent communicators – aptly trained in the ying of technical competence and the yang of customer service.
Though many customers still prefer to talk to the tech support staff that is onshore or US-based, countries like the Philippines and South Africa also have a good track record regarding tech support roles.
Employers looking for even more affordable offshore hiring options may also consider Indonesia and India for tech support workforce. Keep in mind that employers and hiring managers are responsible for ensuring that their offshore staff gets the appropriate training for these roles.
Do you need help in hiring top tech talent? The solution may be nearer and much closer than you think. Consider working with the Fox Search Group for your tech talent needs. You do not have to look far and wide for top tech talent. Reach out to us today!
How has employee engagement changed in the post-pandemic workplace?
The world of work is now very different than it was just a few years ago. The arrival of new business models, the reliance on technology, new regulatory policies, and the Covid-19 pandemic disrupted and transformed the workplace.
To top it all, employees and job candidates have changing priorities. Many feel empowered to have specific demands on their employer and can easily move to another company if these demands are not met.
Changes in Employee Engagement
The Global Trends in the Employee Engagement Survey of 2022 reveal that among 80 percent of employees who have been employed for six months or less. The percentage of employees who remain engaged at work dwindles to 64 percent for those who have been staying in a company for 2 to 5 years.
Yes, employee engagement tends to drop significantly over the years. I mean, have you not heard anything about the Great Resignation?
A study from Harvard Business Review estimates that 55 percent of people employed in August 2021 plan to look for a new job in the next 12 months. This pattern has put employers, hiring managers, and staffing firms on the edge as they now need to be more proactive and aggressive in attracting and retaining top talent.
More and more employees are finding it necessary for their employers to recognize their hard work. With the added flexibility at work made possible by the Covid-19 pandemic, many employees feel that their employers may not appropriately acknowledge their hard work. The Global Trends survey revealed that 59 percent of employees perceive a sense of recognition from their employers.
On the other hand, salary is predictably always the main priority for employees who participated in the survey. Fifty-two percent feel that they are paid fairly compared to other companies. However, the survey revealed that this percentage has also dwindled compared to recent years.
In 2019, 67 percent felt that they were receiving the appropriate salary, while 73 percent felt that, in time, they would get the recognition they deserved in their organizations. Looking at the 2019 numbers and comparing them with the 2021 numbers, as discussed above, you will see that employees’ satisfaction with their salaries and the recognition they get from work has considerably taken a nosedive.
2. Career Growth
Now more than ever, employees and job candidates seek clear opportunities to grow their careers. Staffing firms are getting more interview questions from job seekers about specific career paths they could take in a prospective company and the possibility of climbing up the corporate ladder in the foreseeable future.
Employees who have not been swept away by the tsunami of the Great Resignation remain closely concerned and curious about what their company can offer them in terms of career growth. Thus, an unclear career path is a significant factor in an employee deciding to leave the company and rejoin the job market.
3. Employer Support to Get the Work Done
Most employees are concerned about how much support they can get from their organizations to get the work done.
Various factors come to play when it comes to employer support, such as transparent processes and procedures, an organizational structure that lends ample support to employees with a clear delineation of tasks, and the organization’s technology infrastructure.
The survey revealed that all three factors are equally vital for employee engagement, scoring 58-59 percent collectively.
Easy access, clarity of roles, and an efficient technological stack tell if employees decide to stick it out with a company or move on.
4. Hiring and Retention of Top Talent
Staffing and retention of talent are also top drivers of employee engagement. Sadly, the latest appears to point out that even reputable companies find it challenging to attract and retain top talent.
In 2019, 77 percent of companies reported that they could attract the needed talent. However, in 2021, this has been reduced to 69 percent.
Regarding having the appropriate number of staff to perform a specific task, only 50 percent of employees feel that their company needs more team members to perform daily operations and still retain best practices or achieve quality output.
In talent retention, 75 percent of top organizations feel that they can retain their best people in 2019. In 2021, this number already dropped to 65 percent.
Keeping Employees Engaged Circa 2022
Amidst all these challenges, how can companies keep their employees engaged so as not to let them get swept away by the Great Resignation? Moreover, how can staffing firms contribute to employee engagement in a rapidly changing labor market?
Here are some helpful tips:
1. Recognize Your Employees Regularly and Recognize Them Generously.
Raising your employees’ salaries often will keep them engaged in the utopic labor market. Alas, this is easier said than done.
However, one thing you can be so generous about is recognizing your employees.
Showing employees how much they are valued by recognizing their hard work is an excellent way to engage them. Celebrate their successes with monetary rewards, plaques, paid days off, unique gifts, a big party, or whatever suits your company budget best. The important thing is to make them feel appreciated.
2. Be Transparent with Career Growth Opportunities.
One of the main tasks of HR is to identify clear career growth opportunities for employees in the company. A recent survey from Gartner revealed that only 1 out of 4 employees feel that their company has a clear direction for them regarding career growth. This is why 3 out of every four employees are easily attracted to external roles.
In the hiring process, it is pertinent to set a career trajectory. This begins by communicating role benefits and requirements as transparently as possible. However, since the world of work is rapidly changing, skillsets become obsolete in just a short time. It is wise to invest in upskilling and reskilling your employees to make them more suitable for their current role’s present and future demands.
Upskilling and reskilling your employees also make them better qualified for any upward movement in the future.
3. Make Your Policies and Practices Measurable.
As mentioned earlier, your company processes, clarity of roles, responsibilities, and your organization’s tech stack are all essential resources that determine employee engagement. This is why it is vital to review your processes regularly and to review if your practices are considered best practices insofar as your employees are concerned.
This means you should talk and communicate with your employees more often than you should. Get their constant feedback by asking them to participate in surveys that will give you unique insights into what practices work for your company and what processes should be out of the window.
Maximize your managers and supervisors to get as much feedback from employees as possible. Have regular town halls to resolve potential bottlenecks and mitigate concerns.
4. Get Help in Hiring Top Talent When You Can.
Thirty-six percent of hiring managers feel ill-equipped to provide their organization with the talent needed to fill critical positions and roles within the company. What’s even more challenging is that 50 percent of hiring managers feel that the competition to hire top talent will be more challenging in the next 6-12 months.
When operations begin to suffer due to a lack of top talent for crucial positions in your company, it is high time to consider getting the services of a staffing firm such as the Fox Search Group.
The Fox Search Group is a reputable staffing firm that provides your company with the needed talent. Established by a woman and known for its commitment to diversity and inclusion, the Fox Search Group will proactively connect you with the talent you need. Give us a call so we can have our team of expert recruiters and their efficient hiring methods find you employment that matches your needs.
Is your company done with your compliance checklist?
Now that 2022 is coming to an end, companies are gearing up for the start of a brand-new year by making growth forecasts, expenses projection, and sizing up the human resources needed, among many other pertinent things.
The beginning of the year is high time for regulatory compliance. For the most part, various new regulations about employment and other related policies usually take effect at the beginning of the year. A complete compliance checklist is what you need to religiously attend to as you welcome the new year with cautious optimism.
Payroll and Taxes Compliance Checklist
As the year comes to a close, is your company fully compliant regarding taxes and payroll? Here is a straightforward compliance checklist that you can go over to double-check:
1. Employee Information Verification
Be sure to double-check your employees’ correct addresses so as not to create wastage and experience delays in the mailing and delivery of their W-2 forms.
You also have to ensure that you have updated the information of employees who resigned from your company this year.
2. Verify the W-2 Forms.
Verify all social security numbers files and your corresponding federal employer identification number (FEIN). Avoid being penalized by the IRS for each W-2 returned containing inaccurate information. Moreover, keep in mind to include any taxable cash or non-cash benefits your employees receive.
Your company tech stack should be able to help you with this. Or, if you do not have one just yet, consider making a secure online portal that allows your workers to retrieve their W-2s and check stubs. This will streamline the process and also help reduce paper wastage.
Human Resources (HR) Compliance Checklist
A company HR compliance checklist is an excellent way to ensure that your company complies with all applicable federal, state, and local regulations. Compliance policies have deadlines, and HR must remember these dates each year.
Before welcoming the new year, make sure that your company has done the following on or before the onset of the Christmas and new year festivities:
1. Filing W-2s
Your company should provide W-2 forms to your employees on or before January 31 of each year. This is a top priority so your employees can file their state and federal taxes on time.
Remember that the Social Security Administration should have received a copy of your employees’ W-2 on or before the January 31 cutoff.
2. Reporting of the Affordable Care Act (ACA)
March 2, 2023 is the deadline for employers from large companies to furnish Form 1095-C to their employees. On the other hand, paper Forms 1094-C and 1095-C with the IRS have been set to March 31, 2023, for electronic filings or February 28, 2023, if your company is filing physical forms.
This cornerstone Act, also known as Obamacare, is crucial for your employees, so filing this on time should be one of your HR’s non-negotiables.
3. EEO – 1 Reporting
Some employers also need to submit a report on demographic workforce data. These include information on race or ethnicity, sex, and job categories. According to the Equal Employment Opportunity Commission, the yearly collection of data will begin again in April 2023.
Pertinent Documents Needed for Tax Filings
Here’s a compliance checklist for all required documents you will need for tax filings.
1. CARES Act Employee Retention Credit
Are you one of those companies that fully compensated their employees during the height of the pandemic? If yes, you may be eligible for a tax credit through the CARES Act.
Companies have three years to review wages paid after March 12, 2020, to determine eligibility. Salaries paid from March 13 through December 31, 2020, deemed eligible may claim credit of up to 50 percent of $10,000 in yearly wages paid by employers affected by the pandemic.
Meanwhile, for qualified wages paid from January 1 through September 30, 2021, credit as high as 70 percent of $10,000 in wages paid per quarter is available.
2. FUTA and FICA Forms
The Federal Unemployment Tax Act must be reported, and the corresponding tax liability settled. If your FUTA tax liability is more than $500, your company must make at least one quarterly payment. However, if it is below $500, you may carry it forward onto the next quarter.
Similarly, social security and Medicare taxes, also known as the FICA, must be settled promptly.
On top of all these, conducting an Employee Salary and Benefits review is vital as you usher in 2023. This is also because new regulations will directly impact your employees’ salaries and your company’s ability to attract and retain top talent.
Regulatory Changes That Employers Must Know
Here’s a compliance checklist for everything you need to know to stay ahead of the curve as an employer.
1. Pay Transparency
States with large workforce populations, such as California, New York, and Colorado, have started implementing a Pay Transparency Law that mandates companies to announce pay ranges in their job posts.
The same law also requires companies in these states to publicize their pay data. These include the total number of employees broken down according to race, ethnicity, sex, and the pay band that each employee falls under. For each category, companies must also include median hourly rates for each combination of race, ethnicity, and sex.
Altogether, the Pay Transparency Law wants to establish greater equality, inclusion, and diversity in the workforce.
The state of California, for example, enacted two changes on this matter.
AB 1041 amends the California Family Rights Act, which provides employers with up to twelve weeks of leave to take care of a family member. Taking effect by January 1, 2023, Assembly Bill 1041 expands the coverage of eligible employees to take a break to care for individuals who are not family members.
The expansion now includes a designated person. This refers to any individual related by blood or whose association with the employee equals that of a family relationship. The employee may identify their designated person once they file for a leave. As an employer, you may have the right to limit your employees to only one designated person within twelve months.
3. Consumer Data Privacy (Biometrics) Act
Several US states, such as Illinois, California, New York, and Washington, have taken the liberty to protect their consumers by regulating how companies obtain biometric information and how they use this information which is highly unique for each individual.
The California Consumer Privacy Act, in particular, mandates limited obligations on employers concerning how they process their employees’ data. Aside from employees, the act also includes job applicants, the C-suite, and independent contractors.
Under the law, employers based in California are mandated to provide these individuals with a privacy notice explaining the kind of data being collected and the purpose behind the collection.
The act aims to champion and safeguard data privacy to minimize the possibility of fraud and data abuse.
If doing all these changes feels a bit dizzying to you as an employer or a hiring manager, make sure to stay ahead of these regulations by hopping on a call with Fox Search Group this December to discuss how to welcome 2023 with confidence and ease insofar as these new regulations are concerned. A highly reputable staffing firm committed to providing your company with top talent, let Fox Search Group give you guidance and insight on all the new regulatory compliance you need to know and so much more. Connect with us today!
Is your company ready for the Pay Transparency Law?
An increasing number of states in the U.S. have started to require employers to disclose salary ranges for job openings. The goal is to narrow disparities and push for more equality and inclusivity in the workplace.
Just last week, the state of New York started to require all companies with a minimum of four employees to include salary ranges in all their job posts. Similar laws have also taken effect in other U.S. states, such as Colorado, California, and Washington.
As the Pay Transparency Law takes effect in some of America’s most labor-intensive states, the hope is that significant pay disparities for women and people of color will narrow.
A study made by the Pew Research Center just two years ago revealed that women only earn 84 percent of what men earn. The pay gap is even more massive among women of color. A related study showed that women of color make 58 percent of what non-Hispanic white men earn.
With the Pay Transparency Law going into full effect in many states, employers can no longer keep job candidates and existing employees in the dark regarding salaries.
What Does This Mean to You as Employers?
The Pay Transparency Law will surely change some of the most basic methods on how you do your hiring and determine the salaries of your employees. You may face a period of restiveness in the workplace as your employees learn how much their colleagues are making and demand a raise. Know that this kind of disruption is temporary.
Many companies that have already made their salary ranges public have been revising their corporate policies to accommodate these changes.
However, admittedly, there are other factors to consider. Along with the push to comply with this new law, many employers and C-suite executives’ struggle; to stay afloat amid rising prices and the challenges of recruiting top talent in the era of the Great Resignation.
As your company prepares for the temporary disruption that the Pay Transparency Law will surely bring, here are some handles that you can use to anchor your employees and your company in this rather significant transition:
1. Make a Comprehensive Review of Your Compensation System.
Since the Pay Transparency Law is ultimately a mandate for greater transparency and equality in the workplace, the first thing you need to do is to perform a comprehensive review of your company’s salary system. This will help you identify possible areas of inequities or potential inconsistencies.
After this, you have to ask whether your company’s wage ranges for roles make sense based on the scope of work and the location where your employees will perform these tasks.
The review must include analyzing your present employees’ compensation levels and how they align with their salary ranges and one another. You may then discover that you must adjust based on performance and market conditions.
Finding out that the salary range in your new job posts is higher than their current salary may demotivate some of your employees. Some may also be disappointed that their wages are in the lower range.
The task may be daunting but is completely necessary, especially if you want to keep your best-performing employees. Remember that your company’s most important resource is your human resources. Hence, opening the HR books and doing the dirty work is necessary.
2. Prepare for a Dialogue with Your Employees.
The Pay Transparency Law also requires you to be completely honest with your employees. There may be some discomfort initially, but it is not impossible to overcome.
It would be best if you led in helping your employees understand how their salaries are determined. The goal here is to make them feel that they are adequately compensated. Enlist the help of your hiring managers as well in explaining to your employees why they were placed in a specific part of the salary range and mitigate the concerns from those claiming that they are being underpaid.
Note that having this kind of conversation with your employees is necessary as the law wants to make it intentional for managers and employees to have productive discussions regarding compensation. Other companies are doing it because they have to. Hence, it would help if you started the ball rolling.
3. Focus on the Intangibles.
The truth is that many companies still need to financially prepare to offer a pay raise to address the possible ramifications of the Pay Transparency Law on their workforce. Other factors include inflation, the company’s current state of profitability, its other investments and expenses, and so much more.
Suppose you are one of these companies that still need to be capable of increasing the salaries of your employees. In that case, the next best thing to do is focus on the intangibles your company offers or can offer to current employees and job candidates.
Strengthen the implementation of company-wide policies that support the following;
quality of life,
work-life balance,
flexible working arrangements,
the option to migrate to remote work fully,
and other benefits or perks your company can offer instead of paying your employees more.
Remote work may be a viable option for many of your employees and could be enough to motivate them to stay in your company. A recent job study survey revealed that job candidates are searching for remote work opportunities skyrocketed by 300 percent from July 2021 to July 2022. Job candidates are looking for other things and are not just focusing on high-paying jobs.
This may be a very good counter-offer, especially if your company is a smaller one or a startup. More and more employees and job candidates are looking at work-life balance nowadays. Hence, as an employer, there is wisdom in strategically capitalizing on this.
4. Emphasize that Transparency Leads to Higher Learning
Despite the many potential challenges that companies may face with the full implementation of the Pay Transparency Law, employers can view this as an opportunity to uphold transparency and lifelong learning in the workplace.
According to the Harvard Business Review, transparency puts forth information on the surface, which in turn shines the spotlight on people’s actions. It makes them more accountable.
You may pivot this to your employees to focus not just on accountability or compliance but, more so – learning. Make your efforts on transparency anchored on perfect intentions to promote a more salient sense of commitment among your employees.
Provide your employees with opportunities to upskill and reskill, with the commitment of potentially more financial rewards once these upskilling and reskilling opportunities begin to translate into your employees becoming much better in performing their roles. Investing in your employees’ knowledge and skills benefits both employer and employee.
The Pay Transparency Law is a good thing. It opens the gates for more transparency, fairness, and inclusivity in the workplace. This can make your employees learn and can improve your organization’s performance in the long run.
This is why your role as an employer and decision-maker is crucial. The challenge is for you to ultimately use the Pay Transparency law as a catalyst to promote a healthy work culture, improve accountability and trust within your organization, and promote fairness and true meritocracy among your employees.
In the era of transparency, diversity, and inclusion, companies must work with staffing firms that promote the same values. Reach out to the Fox Search Group for your talent needs and collaborate with a cutting-edge staffing firm that understands how efforts on diversity and transparency can do wonders for your company. Contact us today!
