Navigating Salary Expectations in a Shifting Economy: A Balancing Act for Candidates and Employers

In the dynamic landscape of today's economy, salary expectations play a crucial role in shaping the employer-candidate relationship. As economic factors continue to shift, the balance between what job seekers anticipate and what employers are willing to offer becomes increasingly intricate. Recent reports shed light on the evolving salary dynamics, exploring the rising expectations of American workers and the challenges faced by employers in meeting these demands.

The Surge in Salary Expectations:

According to a recent USA Today article, American salary expectations are on the rise. In an economy marked by inflation and other economic uncertainties, employees are seeking compensation that aligns with the increasing cost of living. As job seekers become more informed about market trends and living expenses, their expectations are naturally adjusting to reflect these changes.

Challenges Faced by Employers:

While candidates are optimistic about higher compensation, employers are grappling with the challenge of managing these soaring salary expectations. It has been reported that salary increases are misaligned with current inflation rates, and although it puts more onus on the employer, the reality is that we are living in an era where money simply does not go as far as it once did. In order for candidates to put their best efforts toward an organization, they need to feel they are being compensated well enough to survive these expensive times. As a result, businesses are being urged to reassess their compensation strategies and adapt their salary structures in response to the evolving job market. It is one of few ways to ensure a business can remain competitive among job seekers. Fortunately, data from The Conference Board indicates a growth in salary increase budgets for the year 2023, which reflects the idea that a majority of employers understand and are effectively navigating these expectations in order to attract and retain top talent.

Strategies for Balancing Expectations:

In this dynamic environment, finding a balance between candidate and employer expectations is essential. Employers can explore creative compensation packages, including fine-tuning benefits, offering flexible work arrangements, and professional development opportunities. This approach enables organizations to remain competitive without solely relying on traditional salary increases.

As the economy continues to evolve, salary expectations will remain a top priority in the labor market. Job seekers, armed with market knowledge, are increasingly aware of their worth, while employers navigate the challenge of meeting these expectations within the constraints of economic conditions. The key lies in open communication, flexibility, and a strategic approach to compensation that goes beyond traditional salary figures. In this shifting economy, the ability to adapt and find a middle ground will be crucial for both candidates and employers to thrive in the ever-changing job market.

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Avoiding A Bad Hire

By Bernadette Hill • January 8, 2025

It’s happened to every company at some point: You hire a person you think is going to be a rock star and help drive your business forward, but what you get instead is a poison pill who is threatening to self-destruct and wipe out your forward progress. Now, depending on when you realized that this was an experiment in futility, this can be a huge financial blunder. How much? Well, CareerBuilder says that two-thirds of companies have hired the wrong person and 41% of those companies claim that it ended up costing them more than $25,000. Worse yet, one in four of those said it cost more than $50,000. These are make or break numbers, folks. The kicker? It almost always could have been avoided. Sure, it’ll take a little more effort up front, but who doesn’t want to do that as opposed to losing $50k on a bad bet? With a little bit of planning you can make sure that you avoid a cultural and financial disaster. Here’s how: Profile your most successful employees. Find out what makes them tick. Then, after you’ve collected that info, ask them for input. These are the people that will be working with new hires daily; you’ll be amazed at what they offer. Write a job description. This is not optional. If you’re just going to “wing it” then how in the world would an employee even know what to do? If you can’t write one yourself, hire someone to do it. Interview, and do it right. Be prepared, have questions prepped based on their resume and cover letter. Take notes based on what your employees told you. Oh, and be ready to spend 75% of the time listening, not talking. It’s all about listening. Don’t fall in love. I don’t care if this is “the one”, you’ve got to meet several candidates for the gig. This is a weird form of corporate speed dating and it’s tough to master, but if you settle for the first resume across your desk, well, just remember what a $50k mistake feels like. References are your friend. If the candidate isn’t willing to cough them up, be wary. These are the people you need to talk to in order to see how your potential employee handles pressure, workload and other people. Bring in your current rock stars. Encourage key team members to participate andif they need to be trained on fundamental interview best practices, then offer it. Think of it as an investment. The first place to look for new employees is from candidate referrals from your existing staff and established advisors and peers. It helps take the guesswork out of the process. Now, without using names, I’d like to hear about some of your bad hire experiences and how you handled it. And, if you’re wondering, “Dealing with a Bad Hire” will be featured soon!

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By Alayna Christian • September 24, 2023

Owning a small business can be a wondrous and rewarding experience. But it does not come without its challenges. Many of them come down to budgets and finances. One way small companies tend to cut back on finances is by skipping out on providing their employees with health insurance options. This can be a critical mistake, however, as health insurance is a major motivating factor for talent at all experience levels today. And in today's competitive job market, attracting and retaining top talent is already challenging enough. Offering health insurance to your employees, even if it does come with a significant price tag, is a key strategy in ensuring that you stand out amongst the many employers your talent may be courting. But providing health insurance has numerous advantages for your small business beyond simply standing out. Let’s explore them below. Improved Employee Morale and Productivity When employees have access to healthcare, they are more likely to be physically and mentally healthy. This translates to reduced absenteeism, increased productivity, and a healthier and more positive work environment. Legal Compliance While small businesses are generally not required to offer health insurance, the rules and regulations regarding healthcare benefits can be complex. By providing health insurance, you can ensure your business is compliant with applicable laws and avoid potential legal issues down the road. Tax Benefits Small businesses may be eligible for tax benefits when offering health insurance to employees. Depending on your location and the size of your business, you may qualify for tax credits that can offset the cost of providing healthcare benefits. Check out this resource to find out if your business can qualify for the associated tax benefits. Enhanced Employee Loyalty Offering health benefits can foster a sense of loyalty among your employees. When workers feel that their employer cares about their well-being, they are more likely to remain loyal to the company and contribute to its success in the long run. And keep in mind, the cost of regularly losing employees (due to them seeking health insurance elsewhere, let’s say) is certainly more expensive than providing health insurance options from the start. Additionally, providing health insurance is a tangible way to demonstrate your appreciation for your employees, showing them that they are valued members of the team. Competitive Advantage Not only do you gain competitive advantage in the recruiting process, but offering health insurance can also give small businesses a competitive edge when bidding for contracts or partnerships. Some clients or collaborators may prefer to work with businesses that provide healthcare benefits to their employees, viewing it as a mark of stability and reliability. In conclusion, providing health benefits to employees is not just a kind gesture; it's a strategic move that benefits both your small business and your workforce. It helps attract and retain top talent, enhances employee morale and productivity by creating a healthier workforce, ensures legal compliance, offers tax benefits, fosters loyalty and appreciation, and gives you a competitive advantage. While it entails costs, the long-term benefits far outweigh the initial investment. So, if you want your small business to thrive in today's competitive landscape, consider offering health benefits to your employees – it's a decision that pays off in more ways than one.