At this point, you’re all too familiar with the fact that shifts in the economy, combined with the lasting effects of COVID-19, have created challenges for businesses to attract, hire, and retain top workers. We are witnessing an unprecedented imbalance in labor availability compared to demand, giving workers more leverage to be selective in the roles they take. Earnings growth is at its highest levels in decades, and wages are rising, particularly for hourly workers, which is a trend we expect to continue in 2022.
“Higher wages for new hires are a must in the current job market, but many more existing workers will need to see pay raises as the starting point for sticking around, and many are expecting a pay bump in 2022.” (CNBC)
By the numbers, here’s the situation:
We work with our clients to provide a range of information and data-backed recommendations related to compensation, brand positioning, recruitment process, and retention. Below we’ve provided example data for Boston and the Eastern Massachusetts region for construction positions. If you’re interested in this analysis for your business locations, we invite you to contact us at solutions@source2.com for a conversation and further details.
Job Postings:
The share of job postings advertising hiring incentives (sign-on bonuses, retention bonuses, and cash incentives) has doubled since last July. Job searches for hiring incentives has increased 134% since the beginning of 2021. (Indeed Hiring Lab)
With more than 40% of employees currently searching for new roles, employers are offering higher salaries and raises, more flexible work schedules, and in-demand benefits like student loan assistance and early wage access. Without these benefits, employees now feel under-appreciated and under-compensated. (Benefit News)
Competitive Pay Analysis by Position:
The annual Occupational Employment & Wages Report from the Massachusetts Department of Unemployment Assistance and the Bureau of Labor Statistics (released in April 2021) for the previous year outlines the current compensation market by industry.
The mean hourly wage for Construction Laborer occupations in the Boston MSA was reported at $28.35 per hour compared to the national average of $25.93 per hour.
Eastern Massachusetts Hourly Data:
Rhode Island Hourly Data:
For more information on how we partner with our clients, check out our website. If you would like to discuss your company’s specific situation and scaling solutions, connect with our executive team by emailing us at solutions@source2.com or by completing our contact form.