What Does This Mean for SoCal Leaders? Adjust Current Compensation Levels Compensation and inflation have both increased over the last few years. If you have superstars who have been with you for more than three years and you have not adjusted their compensation, you need to do that immediately. The job market is hot, and you should expect that your employees are being contacted by recruiters, your competitors, and other companies hungry for top talent. It is much less expensive to adjust a superstar employee’s pay, than to see them walk out, leaving you to hire a recruiter to find a replacement – most likely at a higher compensation level than the person who left. Retention Needs to Be a Top Priority As this year unfolds, we will likely hear more negative news about interest rates, commercial real estate, consumer confidence, inflation, volatility of the stock market, etc. This is the most important time to be hyper communicative with your employees and to up your retention strategies. Keep the team apprised of changes in the organization. Let them know how the company is doing and what plans the company has to weather any potential storm. If employees don’t know what’s going on, it’s human nature to imagine the worst. When things get tough, you need your best talent. Do not ease up on your retention strategies. It’s not the time to take away company lunches, annual parties, or any other perks you offer to keep up company morale. It’s a small price to pay to hang on to your best team members.
9 ARG Quarterly Barometer Q2 2023
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