How Does Wage Analysis Improve Employee Quality?
Employee productivity has been a cornerstone of corporations, both large and small. According to a Workplace Research Foundation study, a single 10% increase in employee investments can increase profits by around $2,400 annually. Although just one example, this research shows promising results that performing a wage analysis and implementing new benefits or employee salary packages could also be the first step in eliminating poor quality employees. However, these are not the only benefits of using wage analysis as a possible solution for poor quality employees.
One other notable example of how a wage increase can directly correlate with productivity and employee quality can be seen in an Amazon case study. Amazon recently decided to raise their minimum wage to $15 per hour for all workers – a step that many business leaders thought would signal the start of job losses. Although, wage increases for Amazon employees increased productivity for two key reasons. First, paying wages above the market rate creates motivation among current employees because they have more to lose. Second, employees are more motivated to do high-quality work to remain employed with the organization.
When working together harmoniously, increased wages is undoubtedly one of the easiest ways to improve morale and eliminate poor quality employees. Essentially, employees will begin to reciprocate by putting more effort into the jobs they are completing. This helps them “pay back" the wage increase that they received. However, determining that sweet spot can only be done through a competitive wage analysis that looks at industry-wide salary estimates, in detail, down to the local the level. Knowing the information can help simplify the process and ensure the best outcome to eliminate poor quality employees
How Can Targeted Recruitment and Retention Programs Eliminate Poor Quality Employees?
To effectively target and market to top talent, organizations must first know what they are looking for in an employee. By defining the skills needed and ensuring that it targets candidates based on the unique job requirements, organizations can actively reduce poor quality employees by only hiring candidates that meet the unique needs they may have. For example, if a manufacturer is trying to fill an engineering position and a candidate must possess up to 5 years of experience and a deep understanding of the field, that criteria can be leveraged to target specific individuals looking for a new career.
Once top talent has been secured, an excellent retention program will further incentivize the quality of work that they are completing for the organization. While employee retention programs are often multi-faceted, providing fringe benefits that work in tandem with their lifestyle or unique needs is critical for creating a long-term partnership that provides high-quality work. Some organizations have found success by simply implementing a gym into their existing facilities for employee use. This is particularly important for those who want to save money on a gym membership or reduce travel times throughout the day. Looking into solutions like this can help reduce poor quality employees.
Organizations that have accounted for their targeted recruitment and retention programs often have happy, productive employees that want to work towards company goals or objectives. At the same time, they will often also have a sense of pride in the work they are completing because they were the right fit for the job from their initial hiring. Recruiters and hiring managers should work together to define the unique needs or skills required for a position while also creating compensation packages that extend far beyond just a salary to ensure employees provide high-quality support for years to come.
How Can Pre-Screening Reduce Poor Quality Employees?
In many cases, simply stating that a background check is required as part of a pre-screening process will deter some candidates from applying for a position. Even more importantly, candidates who apply will ensure they are representing their skills and history as accurately as possible. These are crucial factors that can help determine whether a candidate is a right fit for a position while also saving the organization time and money throughout the entirety of the recruiting and hiring process. Equally paramount, the announcement of pre-screening will also encourage unfit candidates to eliminate themselves from the process.
Pre-screening and background checks were first implemented in the mid-1980s. Once started, businesses began to find that drug users were less likely to apply for positions with companies they knew would be conducting drug tests. Pre-screening will often provide the same impact for modern businesses; however, they can pinpoint many other characteristics or traits that may signify those specific candidates may become poor quality employees if granted a position. Simply put, having a pre-screening solution in place will help transform how potential candidates see your company, ultimately encouraging only fit candidates to apply for open positions.
Eliminating bad hiring decisions before they can take their toll on a company is critical for success in any industry. By implementing a recruitment process that targets candidates holistically – considering their work history, education, references and criminal records – makes it much more likely that a pre-screening process will deliver the top talent available and limit the chances of behavioral or work-related problems in the future. The Equal Employment Opportunity Commission (EEOC) has issued guidelines to help employers determine the proper ways to utilize background information during the recruitment process. In addition to this, the Fair Credit Reporting Act (FCRA) is a federal law regulating the way background information is used against applicants.
How Can Pre-Employment Evaluations Reduce Poor Quality Employees?
Most employers will turn to pre-employment evaluations to find the candidates that are the best person for a vacancy who will contribute to the organizational goals that are in place. Using data from these tests can help provide predictive and validated metrics that will provide a successful outcome. Cognitive tests can help determine job capabilities when tailored to the position. In contrast, personality tests can help determine if that employee will thrive in the work environment that the organization has created. These factors are critical when attempting to limit poor quality employees.
Job seekers are becoming more aware of the skills and talents needed for specific positions, and they will often tailor their resumes to show that they are the best fit for a position based on the requirements given in the job description. Using pre-employment evaluations helps ensure that these skills and cognitive abilities are there and can provide verifiable data to back it up. This means that a hiring manager will have the tools and data needed to ensure that the right candidate is being offered a job instead of relying on the word of what could potentially be a poor quality employee.
In reality, hiring the wrong candidate for a job does not only affect the employer. Most job seekers will be looking for a rewarding career that provides stability and a supportive environment that they will thrive in long-term. As a pioneer in performance based staffing, Certified Source can help simplify the process of finding the best candidate for the position a client has available. We utilize extensive pre-employment evaluations to accurately predict candidate skills and performance based on the type of job they are looking for. This can also help avoid any potential legal issues that may arise due to discriminatory evaluations.