Competition For Top Employees Increasing

August 27 2007 - The Compensation Data 2007 survey shows that competition for top employees is increasing with 96.1 per cent of organizations actively recruiting, voluntary turnover at 12.3 per cent for all industries, and total turnover at 18.3 per cent. Compensation Data 2007 covers 539 job titles ranging from entry-level to top executives with more than 5000 participating organizations.

The survey found that the hospitality industry had the highest voluntary and total turnover rates (24.1 per cent and 34.3 per cent respectively). Health care organizations had higher than average rates with 14.6 per cent voluntary turnover and 20 per cent total turnover. Utilities had the lowest voluntary and total turnover rates (6.4 per cent and 8.6 per cent respectively).

The survey found that companies are using a variety of methods to recruit new employees and reduce turnover.

• Most popular is the Internet (84.4 per cent, up by 7.8 per cent since 2005)
• Newspaper advertising remains high at 74 per cent
• Employee referral programs are used by 59.2 per cent of companies
• Job fairs are used by 54.8 per cent
• About one-fifth (20.6 per cent) advertise with trade or professional associations

Monetary incentives continue to be used in various forms. Sign on bonuses are offered by 31.5 per cent of organizations, increased starting rates by 24 per cent and more raises during the first year by 13.5 per cent.

Amy Kaminski, manager of marketing programs for Compdata Surveys said:

"Concerned with the decreasing talent pool, many HR professionals are working to find new ways to attract and retain the best individuals for the position. Using a targeted approach and new sources can help organizations identify the appropriate pool of qualified job candidates."

Previous Article: Utility Salaries Standing Still

January 23 2007 - The Compensation Data 2006 survey of more than 5300 employers reveals that salaries within utilities have largely stood still over the last three years. The survey found that education and experience are responsible for large disparities. For example, electrical engineering managers with eight years relevant experience and a bachelor's degree earned an average of US$99 148; 51.8 per cent more than a senior-level, cable construction technician with one year's experience and a high school degree.

Experience and apprenticeships can also make a significant difference. Linemen at the journeyman level with three years experience and a completed apprenticeship earn US$54 514 on average. Apprentice linemen make US$42 381; 22.3 per cent less than those with more experience.

Amy Kaminski, manager of marketing programs for Compdata Surveys said:

"Utilities are not the only industry where this is found. However, because salaries and pay increase budgets have virtually stayed the same for the last three years, employers will have to seek new ways to retain their best employees in what could soon be a tight market for skilled labor."

Employers can improve retention of top staff by increasing benefits packages. The survey found that utilities offer tuition reimbursement to 91.7 per cent of administrative workers, 90.9 per cent of hourly workers and 90.1 per cent of technical employees. Flexible schedules are available to 61.1 per cent of technical or professional employees and 58.4 per cent of administrative workers. Utilities provided some of the highest number of sick days to their full and part time employees.

The survey identified health insurance as an ongoing cause of concern for employers and workers in all sectors. While most utilities offer health insurance, 32.2 per cent of have increased the employee portion of premiums to reduce costs. The report suggests this could increase turnover.

• More US Reward Management Articles