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Here are today’s HR and workplace news headlines from Workology Go Podcast. I’m Jessica Miller-Merrell. The Workology Go Podcast is sponsored by HSA Bank.
Ep 5- Competitive Hiring Market Leads to $20 Minimum Wage
Bank of America announced recently that it plans to raise its minimum wage. The hourly pay will rise to $17 starting May 1 and then increase to a higher rate of $20/hour by 2021. The company raised its minimum starting wage just two years ago by $2 an hour. Newly hired entry-level employees will now make $40,000+ a year. The company also promised a benefits freeze benefits to cost for two years as well.
This announcement by BOA is at the heels by Amazon’s recent announcement which committed to paying all of its workers at least $15. The House is considering a bill to raise the federal minimum wage from $7.25 an hour to $15 an hour. In early March, the bill was passed by Congress.
It’s much needed positive news for many employees, especially after many Americans, really felt the pinch from 2017 tax law changes resulting in fewer refund checks.
Economists React to Job Reports
All this talk about our economy softening possibly heading into a recession has lightened up a bit with the March Jobs report being released on April 5th. All these economic factors and job competition is extremely fast-moving and complex hiring and recruitment landscape.
It’s sometimes hard for those outside of recruiting and HR to really understand the challenge of hiring in a competitive marketplace like we are experiencing now. In a recent podcast interview with sales recruiter and agency owner, Will Thomson talked about the challenges in recruiting.
“Recruiting is so much more than just sourcing. You know there are all sorts of things but it is a sales job. You know you are out there selling to the manager at the beginning you’re selling to the candidate you’re dealing with counter offers you’re dealing with a number of processes that you know contracts approvals you know invoices you know these are things that we don’t talk about on a day to day basis but as a recruiter the reality is that you have to deal with every day.”
“I’ve talked to a lot of recruiters and I’ve talked to agency recruiters and I’ve talked to corporate recruiters and I think regardless of if you are an agency or a corporate recruiter I think it’s essential because I think you need to understand the landscape of why people are coming and leaving and staying and satisfaction.”
And understanding that competitive landscape is something that Bank of America and Amazon are doing. Are you taking a look at your current salaries and compensation to ensure you are competitive in a specific geographic location or industry?
Employment gains were strongest in the healthcare industry, which added 49,000 jobs in March. The construction industry added 16,000 jobs and has increased by 246,000 jobs in the past 12 months and unemployment has stayed steady at 3.9%
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