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Don’t Think A Healthy Compensation Will Retain Good Talent? Think Again

June 23rd, 2016 | Posted by Apex Time Solutions in Benefit Accruals | Employee Scheduling | Overtime | TimeWork

It has been said that the financial crisis of 2008 has been used, by some companies to keep wages low. Some of have compared the 2008 financial crisis to the depression of the 1930s as being the same or worse. And, while the economy has somewhat gotten better, many workers are still fighting to get a decent wage. The companies who consistently choose to pay employees low wages are, for the most part, out of touch with reality and, the protests in the streets over the years, is an indication of how strongly many of these low-wage earners feel.

The issue of stagnant pay increase is also an issue for middle managers and an article by Christie Hunter Arscott for Harvard Business Review says as much. The title of the article “Why So Many Thirtysomething Women Are Leaving Your Company” focuses on the reasons why men and women alike leave a company. And, when you sift through the reasons, it pretty much boils down to regardless of the title we hold and whether it’s a man or a woman, everybody wants to be paid a decent wage, one that he/she is able to survive on.

Here are 3 tips from Christie Hunter Arscott article that companies can use to assess the wage structure as it pertains to its employees:

“Ask, don’t assume: Women in their thirties should play an integral role in developing talent retention strategies. Instead of talking about them, talk with them. Want to know why women are leaving your organization? Don’t assume. Ask them and then develop data-driven strategies based on these findings.

Address challenges beyond family and flexibility: While options for flexibility and work-life balance are important, the bottom line is that motherhood is not the primary reason why talented women are leaving organizations.

Propose women’s strategies as broader talent strategies: Gender appears to have little impact on an individual’s reasons for leaving an organization. This is good news for organizational leaders. There is less of a need to segment and complicate talent strategies by gender. Instead, there is the opportunity to create broad impact through strategies that address the desires of both mid-career women and men.”

Don’t Think A Healthy Compensation Will Retain Good Talent? Think Again

In conclusion, choosing to pay employees at the bottom-end of the scale will only lead to them leaving your company. And because the job market is tight, it’s very likely that the vacation position can be fill very quickly. However, sooner or later, companies who are known to have a high turnover rate, because of excessively low pay, will be avoided, even by those who are desperate for work. The good news is that the companies who pay their employees the poverty wages are in the minority-so, there is hope.


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