In a saturated job market, competitive compensation has never been more important. With inflation and the cost of living rising, companies must also take competitive wages into consideration in order to attract top talent.
In a Job Insights survey conducted by The Harris Poll, 22% of U.S. hiring decision-makers cite their company’s pay not being competitive as a challenge for 2024. Furthermore, 60% of hiring decision-makers say more employees at their company have asked for a rase in their salary/wages due to an increase in the cost of living.
When it comes to determining if your company is offering competitive compensation, there are a few standout factors to take into consideration.
Competitive Compensation by Industry
Researching what other companies in your industry are paying their employees can provide great insight when it comes to looking at whether your current compensation is competitive or not. Our Specialized Recruiting Group 2024 U.S. Compensation Trends Report is a fantastic resource to start with, breaking down common job titles by entry-level and experienced roles in specific industries including:
- Accounting and Finance
- Engineering
- Human Resources
- Information Technology
- Legal
- Sales, Marketing, and Creative
- Supply Chain and Logistics
Competitive Compensation by Geographical Location
Looking at both the geographic location in which your company resides, as well as the workforce in your area are both important factors to consider when it comes to competitive compensation. Average wages can vary from state-to-state and even city-to-city depending on more metro or more rural settings. Additionally, if a specific skill set or experience is hard to find in your region, competitive compensation could be a way to entice perspective candidates to relocate.
Competitive Compensation Beyond a Candidate’s Salary
Competitive compensation no longer applies just to a candidate’s salary. Benefits including bonuses, hybrid schedules, and paid time off are additional components that can increase your company’s competitive compensation without adding dollars to their salary amount. With that being said, 75% of U.S. hiring decision-makers say their company will increase wages in 2024 according to a Job Insights survey conducted by The Harris Poll.
Even if your company has established competitive compensation when it comes to the initial hire, it’s important to maintain that competitive compensation as employees grow and tenure within your company. If you’re only putting those dollars toward drawing new candidates to join your company, you risk losing senior staff who could be pulled toward a new company offering more competitive compensation down the road.
While creating and maintaining a competitive compensation structure within your organization may seem like a challenge at first, a bit of research can go a long way. Our Specialized Recruiting Group 2024 Compensation Trends Report can help you take the first step toward competitive compensation with average salaries for in-demand professional roles.
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