It’s the Wage, Stupid—Or is it?

June 16, 2022

Are you experience a labor shortage at your business?

For the last year, employers in the United States—especially those in the lower-wage manufacturing and service industries—have had to deal with labor shortages. There are have been many factors that have led to this, including:

Enhanced unemployment benefits from the pandemic
Mass exodus of baby boomers from the labor force
Lack of affordable or accessible child care
The need for better jobs or working conditions

Many businesses have found the goal of attracting workers eases after increasing wages, saying, “It’s the wage, stupid!”

But is it? Is wage the only issue?

Wage is the Tip of the Iceberg

In Utah we have seen unemployment rate drop beneath 2%. In fact, Utah reported a 1.9% unemployment rate in April of 2022. The growing concern surrounding quality staffing and labor available is valid. Competition for quality workers is fierce! Rising costs of goods and inflation across the board has only exacerbated the struggle.

The struggle for talent is real!

Often a business owner or executive’s first thought in addressing the labor conflict is simply to increase wage. That seems to be the easiest or most common sense response, right?

A competitive wage is important and is definitely worth inspection as a key point to attracting the right type of talent, it is not the only factor to be considered. Throwing more money at a problem is not always the best solution. To use the iceberg metaphor, wage is only what you see floating above the ocean. There are many more potential issues to consider hidden beneath the water.

At Your Employment Solutions (YES), we specialize in analyzing local markets against the current labor availability. In order to make the best decisions for business success in the current labor market you need access to a full spectrum of data and analytics. You want to know what the iceberg looks like beneath the water. Current data and actionable analytics from employment industry experts can guide you in creating a smart employment strategy in attracting and retaining quality talent.

Request a Custom Wage Analysis from YES!

At YES, we offer regular wage analyses for our clients. In addition, YES offers creative and valuable solutions that complement our custom wage analyses to help each client make smart decisions for their staffing needs. Our partners receive powerful data and custom analytics to empower them to make the right decisions for their employees.

Wage is just one way to compete, but it is not the only way. If your company is concerned about competing in the current wage wars, reach out to YES directly. We’d love to opportunity to show you why we’re Utah’s best staffing agency.