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Survey looks at compensation and attracting talent

July 28, 2014

Employers face a number of challenges finding qualified talent. A lack of qualified workers is one commonly voiced concern, while some argue companies are unwilling to pay candidates enough for in-demand positions. A new survey by Aerotek Inc. found 51 percent of respondents pay below their industry competitors and respondents were two times more likely to say they struggle to fill senior positions if they pay less than their competition. The survey included 571 global organizations and was conducted in conjunction with the Human Capital Institute.

“With specialized individuals and senior-level talent in higher demand than ever, a company’s ability to attract and retain top talent is a critical component in the overall success of their organization,” said Dave Poling, director of recruiting operations at Aerotek. “Employers should view their talent as an investment rather than an expense, with the understanding that higher compensation can lead to more qualified candidates, increased productivity and greater levels of engagement and retention.”

In addition to the importance of compensation, the survey also found:

  • Growing expectations. The increased complexity of positions due to more advanced technologies, increased time pressure, broader job descriptions and lower headcount is responsible for increased educational and experiential expectations for new hires.
  • Recognizing talent as an investment. Increased productivity was ranked as the top advantage of hiring top talent at higher costs, and most respondents believe higher productivity is worth the higher pay. In addition, companies that pay below competitors were almost two times more likely to have high-performer turnover.
  • Employee satisfaction with total rewards. Employee development programs and a generous PTO policy increase employee satisfaction after controlling for compensation. Organizations looking to add or modify their benefits may find that additional development opportunities and more PTO can lead to greater satisfaction with total rewards.