In 2023, the importance of paying a living wage is more important than ever before. As we continue to navigate through the global pandemic, economic uncertainty, and social inequality, it is imperative that you as an employer take a closer look at how you pay your staff.
First things first, what is Market Salary Data?
Market Salary Data refers to the salary range that’s considered normal for a particular position in said industry.
Got it, but why is Market Salary Data important?
Because it helps you figure out how much you need to be paying your employees! This data can help you make informed decisions when it comes to setting salaries and benefits for your staff.
Let’s do some math…
With this equation, you can see that $50,000 per year does not even cover the costs of essential bills in 2023. This pay leaves you with a negative amount of money in your account, leaving you with no room to spend money on anything you enjoy, let alone your necessities.
The Importance of Paying a Living Wage
A living wage is defined as the minimum amount of money an employee needs to cover their basic needs, such as housing, food, and transportation. Paying a living wage is not only the right thing to do, but it is the necessary thing to do. According to a recent survey done by Gartner, only 32% of employees think they get paid fairly (Gartner, 2022). What makes you think the other 68% doesn’t translate into your staff?
Reduced Employee Turnover
When you are paying a living wage, your employee turnover rates will be heavily decreased. When employees are paid fairly and can afford to meet their basic needs, they are more likely to stay with their employer. This can lead to reduced costs associated with hiring and training new employees.
Paying a living wage can improve employee productivity and morale. When employees feel valued and respected, they are more motivated to work hard and contribute to the success of the company. Think about it, if you can’t give your staff the bare minimum, why would they give it to you?
Market Salary Data is a very important tool for employers to ensure they are paying their employees fairly and competitively. However, in 2023, it is not enough to simply rely on market data. Employers must also consider the importance of paying a living wage to ensure they are taking care of their employees basic needs. By doing so, employers can attract and retain top talent and improve productivity and quality of work.
Now listen, if you are one of those employers who may be left with little staff because you weren’t paying at the market rate, HIRE Strategies can help you turn things around. By implementing a more strategic and intentional approach to hiring, we can help you analyze the current market trends and provide guidance on the appropriate salary rates for your employees. With our expertise, we can help you find top talent that are not only a great fit, but are satisfied
with their compensation.
If this hit a little too close to home, contact us today!