What Small Business Can Teach Us About Employee Compensation
Hourly small business wages surged at the end of 2019. At a time when the hiring market is tight, bigger businesses might consider following that example. The right employee compensation package can support a robust Talent Optimization strategy. This, in turn, helps your organization achieve its strategic goals, but only if the decision is based on data.
As unemployment hovers near record lows, it seems that every business leader faces the same challenge: hiring and keeping the right talent. The basic laws of supply and demand would suggest that as unemployment falls, wages should rise to help businesses stay competitive. That hasn’t happened. At least, not in most sectors and not fast enough. Since the 2008 recession, employers have remained conservative when it comes to employee compensation. The share of corporate income that is passed on to workers has remained small, well below pre-recession rates.