It's time to examine your compensation program
By Jack Keough -- Industrial Distribution, 11/1/1999
IF YOU'RE TRYING TO RECRUIT SOMEONE to fill a job at your company, you probably already know that it's never been harder to find the right candidate. The unemployment rate is at an all-time low and employers from every industry are scurrying to find workers. How bad is it? A Boston company is now offering $1,000 bonuses to anyone who can help fill any one of 35 positions currently available.A manufacturer of power tools in the New York area can't run a third shift because he doesn't have the people needed in production. He's paying an exorbitant amount of overtime but still can't expand the business because of a lack of workers.
That's why it is especially important to keep your good workers. Our latest salary survey (P46) shows that employers in the industrial distribution business are paying their workers at a much higher rate than ever before. The problem is particularly acute for employers who are trying to fill positions in the warehouse or those involved in delivering products. Salaries for those positions are skyrocketing. And the labor situation isn't likely to change in the near future, according to several industry studies.
There are a number of steps employers can take to recruit and keep valuable employees. First, interviewing prospective job candidates should be an ongoing process, not just something you do when a position is vacant. Employers should keep an active file on people who are good job prospects and keep in contact with those people.
Second, distributor management should review their compensation systems. Compensation is more than just salary. If you haven't done so already, establish a tuition reimbursement plan. Employees who are eligible for reimbursement would be required to stay for a certain amount of time after completion of the course or the tuition would have to be paid back.
Third, offer incentive plans. Employees in the warehouse, for example, would be paid bonuses for shipping product complete and on time.
Fourth, establish goals for specific teams within the company. Once the goals are met, bonuses would be paid to all team members.
Seventy-two percent of the respondents to our salary survey this year report they receive some form of incentive pay. Take the time to examine your compensation system, and keep them at least in line with your competitors. It will more than pay for itself when you retain good employees.
Talkback
Related Content
Related Content
Sponsored Links
View All Blogs
