Pandemic-related economic hardships and the looming threat of a second wave are creating incredible uncertainty and financial stress. And now that our nation’s gears are starting to turn again, organizations are understandably looking for ways to keep operational costs down.
But skimping on employees’ pay isn’t a smart option.
In an effort to save workers’ jobs and keep their businesses running, employers who pay below market wages aren’t doing themselves any favors. In fact, they’re putting themselves at a competitive disadvantage. If you’re not paying competitively:
- Employees may be unwilling to return.
Right now, people are concerned about their safety. In some cases, they’re making more on unemployment than they would if they returned to work. If you can’t entice furloughed or laid off employees to return:
- Who will fill orders, serve customers, complete projects and keep your business running?
- How much will you have to spend on recruiting and hiring their replacements?
- Employees may become resentful.
As those negative feelings grow, workplace relationships and job performance will suffer.
- Employees’ financial stress will eventually begin impacting their focus and attendance.
Fact: 1,000,000 U.S. workers call off work every day due to stress.
- You’re fueling turnover.
Businesses that pay minimum wage suffer from the nation’s highest turnover rates (ranging from 50 to 200 percent annually).
Paying competitive wages and salaries pays off for your business.
Employees who are paid fairly exert higher discretionary effort. They are more efficient, engaged and loyal too. While you must invest more to gain these advantages, in the long run, “paying up” ultimately helps you build a healthier bottom line.
If you’re on the fence about raising pay rates, or if you need proof to justify the case internally (i.e., to senior management), read our free eBook, “The High Cost of a Low Pay Rate.” It explores the myriad business benefits of paying competitive wages and provides guidelines to help you:
- Compensate your team in ways that optimize performance and improve retention.
- Entice your best furloughed and laid off employees to return to work.
- Top-grade your workforce during this unprecedented period of talent availability.
- Set competitive pay rates for your company, industry and market.
- Build a stronger bottom line, by building stronger team.
Download “The High Cost of a Low Pay Rate” here.
Could low pay rates be impeding your recovery?
Talk to the strategic workforce and hiring experts at PrideStaff. We’ll listen to your needs, review your challenges and help you thrive in today’s economy – and rebound quickly.