Exploring Wage Analysis as a Possible Solution for Meeting Headcount

3-5 Minutes to Read

Across the United States, employers are all having trouble meeting headcount goals while also ensuring their labor costs are kept in check. This trend is especially prominent among industries that require a high level of skill. While there are many common ways to address this profit loss, including reducing overtime availability and squeezing markup to pass costs along to customers, this can create a bottleneck that still limits the availability of new, skilled candidates to meet overall headcounts. Unfortunately, it has never been more important for businesses to focus on improving these numbers while also implementing wage analysis methods into their overall plan.

Luring candidates that will contribute to both organizational and departmental goals is crucial for meeting headcounts. Taking the time to perform a wage analysis and determine a competitive market wage for potential employees is crucial for ensuring that these headcounts are met and candidates that are looking for a long-term career are offered positions. Not only can a wage analysis help with meeting headcount, but it can also help bolster retention strategies and incentivize employee loyalty within the company. But how does a competitive wage analysis improve headcounts and what other benefits can be achieved through an improved salary and benefits package?

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How Does Wage Analysis Improve Headcounts?

When modern businesses expand, wages and other associated benefits are often left behind in the growth process. This, in turn, results in non-competitive wages and high levels of employee turnover that make meeting headcounts even more difficult. A wage analysis can best be described as a comprehensive examination of current salary and benefit programs for an individual position type that is then compared with local, regional and national data. This helps businesses stay a competitive option for job seekers while also ensuring that current employees are not being lost in the mix.

Among industries that are reliant on meeting headcounts, like manufacturing, is it common for a sub-par candidate to be accepted just because they have the minimum skills required and can quickly fulfill headcount goals with little disruption. With this strategy, those same employees will likely leave quickly or be removed from the team – further hindering the ability to meet headcounts. In some industry, this creates a stream of constant churn that makes it impossible to have a solid workforce daily. This can cause stress on other employees and further hinder morale and productivity, potentially resulting in even more turnover of the most valued employees within the company.

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Worker in protective clothing

Paying employees a fair wage and ensuring they are receiving the benefits that they are looking for is critical for meeting headcounts. As many employers are now starting to understand, one of the best ways to accomplish this is through a solid wage analysis plan that regulates pay caps and ensures the business remains at the forefront of jobseekers’ minds when they are looking for a new career path. Although this may seem like a bold step, the benefits that can be achieved in high-turnover industries are immense. Certified Source can help cut out the guesswork and improve headcounts through our unique performance based staffing solutions.