How do you use a city's "good job" pay rate to recruit, engage and retain?
“All I am looking for is a good job."
"There are NO good jobs!!"
"I had a good job but lost it."
- Common refrains heard fromjob seekers everywhere
People Profits Principle #86
A city's "good job" pay rate can be determined and used to recruit, engage and retain
What is a city's "good job" pay rate?
When a person has a “good job” they will do whatever they need to do to keep that job. Of course, presuming they will not do things that are illegal, unethical or immoral.
You can go into any city and find out what the pay rate is people see as being a good job for general labor and semi-skilled positions. They will give you a job pay rate that would motivate them to keep the job. The rate will differ by position, organization and geographically. There are ways to learn what the rate is and then it can be used to recruit, engage and retain.
Higher pay rate + fewer more productive people = PROFITS
How can a "good job" pay rate be used for recruiting?
The pay rate amount itself will draw in applicants. The word of mouth will spread quickly. Due to the rate, the applicants will be better than average. My experience has been that they will have less of an attendance issue and will desire to do a good job. Those issues alone will assist in increasing productivity. When your better employees are engaged they can be utilized to recruit for you. Your better people will bring you even better people. Then you can replace the people who are lower on the productivity scale – further driving up productivity.
How does a "good job" pay rate increase productivity?
Because the employee wants to keep the job - they will meet whatever standards and goals put before them. You increase the standard and goals by a higher percentage than the increase in pay. The better people will always make it work. You will find that you need fewer people to get the higher level of productivity - making more money. Retention increases as the employees are making more money than they can make elsewhere.
People Profits case study: A manufacturing company increased their pay rate by $2.50 an hour for a particular position. At the same time, the standards required of the workers increased by the appropriate amount. The level of productivity rose significantly and much higher than the percent increase in the wage rate. We always had plenty of applications and turnover stopped.
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Clark Ingram, MBA, SPHR, CEBS, CPCU is the principal of People Profits, www.PeopleProfits.com ©2015 People Profits, LLC
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