How to Manage Wage Increases in This Age of Hiring

As the minimum wage goes up and workers are in short supply, it can be difficult to hire qualified staff. This is why you should consider increasing the starting rate for new hires. Although raising hourly wages can be difficult, there are ways to make it work.

Implement these suggestions to manage higher starting wages to recruit qualified employees.

Be Transparent About Your Budget

When negotiating hourly rates, be upfront about what you can offer. If it is only a few dollars more per hour than the previous rate, say so. Candidates will appreciate your honesty when setting realistic expectations. Remind them that you are doing the best you can with the budget you have.

Offer Bonuses

If you cannot provide new hires an increased wage, offer regular opportunities for bonuses. They may be based on performance, experience, or another relevant factor. The ability to earn bonuses can increase employee motivation. Also, instant gratification can be useful to reward productivity.

Model Your Competitors’ Actions

Pay attention to the wages your competition is offering candidates. This includes what they are paying now, how often they are offering raises, and how much they are budgeting for an average wage increase. Understanding these details can help you pay a competitive wage that attracts new hires to your company.

Maintain Consistent Raises

Remain fair and equal when giving out wage increases. If you provide greater raises for higher-paid employees or let bias affect your decisions, you can face conflict and dissatisfaction among your staff. Keep in mind that you want to promote a culture of teamwork and camaraderie. This can be facilitated by fair distribution of pay increases to motivate your team members.

Offer Better Benefits

If you cannot provide higher wages for new hires, attract them with more competitive benefits than what you normally provide. You may include additional paid time off or another incentive to work for you. This increases an employee’s overall compensation without affecting your department budget.

Focus on Increased Retention

The more employees earning a higher wage, the greater your retention rate should be. Staff members who are rewarded for their contributions tend to experience greater job satisfaction and remain loyal to the company longer. The longer your employees stay, the less need you have to hire and train their replacements. This means less time and money should be spent on recruitment.

Do You Need Qualified Candidates?

Talk with the experts at the Morris Bixby Group about your need for agriculture, turf, ornamental, or specialty/pest control staff. Contact us today.

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