The salary landscape has become somewhat murky since the pandemic fueled remote work. How has this impacted efforts to pay a fair market wage? What steps should organizations take to ensure salary practices are competitive and appropriate to attract top talent? What sources of information should they turn to for evaluating the competitiveness of their pay practices? What used to work that doesn’t anymore?
Here, we look at these questions and offer some advice for employers operating in an increasingly competitive talent market.
It all starts with your pay philosophy
All employers have a pay philosophy, whether they’ve clearly articulated it or not. In short, do your pay practices lead, lag or match the market? There’s nothing inherently right or wrong with any of these philosophies.There are, of course, different outcomes that might be expected.
For instance, taking a lead role might make your company more attractive to job candidates, but could result in your spending excessively to attract talent. Conversely, lagging the market could make it more challenging for you to find qualified employees who stay on board for the long term.