Employer of Choice E1: The Elephant In The Room: Compensation

• Introduction:
  • Hosted by Tom Parks, Director of Retirement Plan Services at Annex Wealth Management.
  • Guests: Eric Becher (21 years at Hatch Staffing) and Lori Malett (29 years in recruiting).
  • Focus: A series exploring how employers can become an "employer of choice" through topics like flexibility, wellness, community, leadership, and brand.
• Compensation Overview:
  • Compensation historically focused on salary but has evolved to include a "total rewards" package.
  • Lori: Post-2022 salary spikes (10-30% increases), employees now prioritize the full package (benefits, etc.) over just cash, with this shift evident in 2023-2024.
  • Candidates now demand benefits details upfront before interviewing, unlike past decades when benefits were discovered post-hire.
• Changing Dynamics:
  • Tom: Compensation acts as a baseline "disqualifier" (e.g., too low = no interest) rather than the sole lure.
  • Eric: Employees are savvier, researching market rates online and openly discussing salaries with peers—once taboo.
  • Employers now include salary ranges in job postings, a shift from 10 years ago, though detailed salary talks still occur later in interviews.
• Industry and Demographic Variations:
  • Lori: Manufacturing (big in Wisconsin) focuses more on hourly wages than benefits, unlike college graduates who seek the full package.
  • Eric: Compensation priorities vary by industry and career stage, but market awareness is universal due to accessible data.
• Resources for Compensation Insight:
  • Lori: AI tools like ChatGPT provide current, reliable salary data for both employers and employees—updated within six months.
  • Eric: Employers share market rates with recruiters like Hatch, giving a broad view of competitive pay.
• Salary Range Flexibility:
  • Lori: Ranges are firmer due to internal pay equity—new hires can’t out-earn existing staff to avoid turnover and morale issues.
  • Placement within a range depends on experience, project scope, and added compensation like bonuses or commissions.
• Key Benefits Beyond Cash:
  • Lori: Time off is the top benefit candidates seek, surpassing expectations of health or retirement perks.
  • Eric: Salary becomes less critical if employers effectively showcase their brand and offerings early in the process.
• Employer of Choice Takeaways:
  • Lori: Employers should calculate and present total compensation (salary + benefits) in interviews, collaborating with CFOs/controllers.
  • Eric: Employees should be upfront about compensation needs early to align expectations and avoid late-stage mismatches.
  • Lori: Leverage AI to ensure salaries align with market trends.
• Looking Ahead:
  • Series will cover flexibility, wellness (financial and health), and community—interconnected with compensation themes like time off.
  • Goal: Help employers stand out by holistically addressing employee needs beyond just pay.
• Closing:
  • Guests emphasize proactive communication and market awareness for both employers and job seekers.
  • Podcast aims to provide actionable insights for becoming an "employer of choice."