Every industry is slowly moving towards hiring more skilled employees to ensure that they form a team made up of experts. With specialized skills comes the expectation of a higher salary. A programmer is well versed in a relatively recent developing language that is fast becoming popular. While appearing for interviews, the programmer is bound to draw attention to that one skill. Employers will also value the knowledge and skill that the programmer will bring to the company. The result is that the programmer expects a higher salary and the company will be willing to offer a higher salary because of the skill and knowledge they will bring with them.
Competition in the corporate world is fierce, be it any industry, banking, advertising or even consulting. Companies have learnt to value their employees. Compared to five years ago, they are willing to pay more to retain the talent that is already a part of the company. Replacing a skilled employee is more expensive than retaining a skilled employee in the long run. Therefore, it is much better to invest in what you already have than to start the process from scratch.
Gone are the days when a modest salary was sufficient. People’s lifestyles are changing and so are their expectations of form their jobs and the companies they work for. Mindsets are quickly changing and buying good things and enjoying good food are integral aspects of life for the current generation of workers. As people in the workforce become more aware of their place in the company, they also become aware of what specialized skills they might need to stand out. Some will even go a step further and train themselves to ensure that they have the extra edge to negotiate for a higher salary or pay raise.
Another aspect that is a part of the increasing trend in salaries is the duration of an employee’s tenure at a company. Employees who have been at a company for a certain period of time expect increases based on their work and performance reviews. Just as skills are given importance, so is experience and the subsequent value it brings to a company.
An important question that a company must ask itself is whether it wants to stick a strict budget when it comes to salaries, or whether they would much rather be flexible when it comes to paying their employees to ensure that they remained with the company. Each company has a different working style and a different budgeting strategy.
If all this sounds too complicated, it is not so. Recent advancement in payroll management systems has ensured that each aspect of an employee’s salary is taken care of. Integrating such a system with workforce management software with analytics will give you reports about your employees. These reports predict employee behavior, as well as predict which employee is more likely to stay with the company for a longer time. The longer an employee stays, the more value they bring to the company.
In the end, it boils down to how much you value the skill and talent in each of your employees. Skilled employees are an asset to the company and should be treated as such. Looking at the long-term plan for your business, an increase in salary now for valuable employees will mean a growth in the business for you.