Last week, it was announced that the U.S. economy added 227,000 jobs during the month of January, significantly higher than the 157,000 jobs added during December. This also exceeds the consensus estimate of 174,000 job additions. Interestingly, these are the highest monthly job gains since September.
At the same time, we learned that average hourly wages rose only 0.1% in January. This compares to December’s gain of 0.2%. This lack of wage growth suggests further room for tightening in the labor market.
The job market is clearly tightening and it should be expected that it will become harder to find qualified candidates. In addition, in a flat wage environment, as an employer, it’s becoming more and more challenging to differentiate among a sea of other employers. Add to that the natural desire of younger millennials to switch jobs and maintain flexible lifestyles and you have a very difficult recruiting and retention environment. In this sense, you must adopt innovative recruitment strategies to attract and retain your existing workforce.
Offering the most cutting edge benefits is one way to stand out and improve employee recruiting, especially in a flat wage environment. Benefits are so important that a 2016 Aflac Workforces Report found that 60% of employees are likely to accept a lower salary in exchange for better benefits.
As you already know, one innovative benefit is offering your employees the ability to get money before payday. DailyPay partners have seen an average reduction of 41% in turnover following implementation. This makes sense. This benefit empowers and motivates your employees. They can pay bills on time which reminds them they can be financially secure while working at your company. All of this results in meaningful turnover reduction, which saves the company money and boosts profits.