The labor market has been chaotic over the past three years to say the least. Organizations have faced significant compensation challenges due to economic uncertainty and demographic shifts. To address these obstacles, companies have had to evolve their strategy.
Factors influencing compensation in recent years include:
Labor force participation rates not recovering after the pandemic
Shifting workforce priorities
Wages chasing inflation and remaining sticky
Increase in remote work opportunities
Transparency of benefits and salary ranges in job postings
Watch the full webinar to learn how Southern Glazer’s Wine & Spirits partnered with Lightcast to respond.
Labor market uncertainty and limitations of traditional salary surveys have left management teams seeking answers.
Labor market data can answer these questions and more. There are two main sources of labor market data: official government data and real-time information.
Government data is reliable when things are stable. Real-time information, which includes job postings and online career profiles, is helpful during change and economic shifts. Lightcast enables organizations to put this data into action:
Compensation data helps organizations make data-driven decisions.
Companies can use relevant salary data to:
Achieve visibility into real-time fluctuations in pay rates
Access granular data for tailored compensation analysis
Identify emerging skills to stay competitive in the market
In order to respond to present conditions, organizations need the ability to identify the inflection points that provide insight. Additionally, considering past wage and benefits trends is important, as this historical context often provides meaning to current situations. Wage expectations of the available talent pool is another crucial piece of information to consider when beginning to plan compensation strategy.
A strategic approach to salary planning involves analyzing supply data (online resumes and career profiles) and demand data (job postings). Combining these insights gives a more holistic view of the labor market. Collecting information on incumbent and market wages along with predicting future skills further facilitates strategic planning.
Organizations who identify disruptive skills and their corresponding salary premiums are able to develop training and career paths. With this understanding, they can implement competitive and equitable pay structures that support recruitment as well as retention.
Check out the full webinar to learn how to use data to build competitive compensation strategies.
To understand where your company stands and your pain points, use the compensation intelligence framework.
Many companies face challenges in retention and recruitment that coincide with immediate and future compensation trends. While organizations seek to understand the competitive landscape to attract top talent, understanding competition is just one aspect of compensation intelligence. Other crucial aspects of the framework include pay alignment, pay structure sustainability, and salary benchmarking.
Proving the case for using compensation intelligence:
With Lightcast, a manufacturing company optimized their skills-based hiring approach. By leveraging compensation data around skills, certifications, and degree requirements, they were able to save thousands of dollars per employee.
Are your current compensation practices agile enough for today’s volatile markets?
To see how compensation data can help your organization track labor market trends, benchmark wages, identify emerging skills, and build a strategic compensation strategy, fill out the form below.
