Hiring is hard, but hopefully business owners are not making it harder than it has to be.
As a longtime partner of FieldPulse, I always appreciate the opportunity to share recruiting insights with business leaders as it is a good assumption to state that your number one challenge at the moment is finding talent for your team. Since leaving the Army over 8 years ago, I’ve been incredibly fortunate to help companies of all sizes across North America connect with exceptional talent. Currently, I am the CEO and co-founder of BlueRecruit, a direct-hire marketplace for skilled-trade workers wanting to build their careers and the companies seeking their talent. Because the average blue-collar job requires 4x more hard skills than white-collar roles we built BlueRecruit to better fit the needs of the trades. BlueRecruit removes the inefficiencies of resumes and job posts and focuses on the skills and experiences that matter. It is this ability to adjust to the needs of our industry and skilled workers that gives businesses a competitive edge in this incredibly challenging labor market.
When Did You Last Adjust Your Pay Rates?
Unfortunately, something we see all too often is that trade businesses are failing to properly adjust their compensation rates and subsequently losing talent to their competitors. In the dynamic landscape of the skilled trades, a growing concern we regularly witness is the failure of many business owners to increase pay rates in tandem with both inflation and the overall lack of available talent. At the end of the day, supply and demand applies to talent as well. Despite the indispensable contributions of trade workers, a significant number of business owners seem reluctant to adjust compensation to keep pace with the rising cost of living.
An obvious consequence of stagnant pay rates is the difficulty in retaining skilled workers and attracting new talent to your business. As the demand for skilled trades continues to rise, the lack of competitive compensation becomes a significant deterrent for individuals considering entering the trades or staying with their current employer. The shortage of skilled workers, exacerbated by insufficient pay, can have detrimental effects on the quality and efficiency of projects, ultimately impacting your bottom line.
While some owners remain hesitant to increase pay rates due to profitability concerns, many successful companies have taken a different approach. Forward-thinking businesses recognize that investing in their workforce pays off in the long run. By offering competitive wages, benefits, and opportunities for advancement, these companies not only attract top talent but also foster a positive workplace culture that enhances employee morale and productivity.
Ensure You’re Using Up to Date Data
But how do you know if your offering competitive wages? My suggestion, DO NOT check your pay rates against Glassdoor, ZipRecruiter, or the U.S. Bureau of Labor Statistics! In the case of Glassdoor the information is likely extremely bias one direction or the other, or for the BoLS the information is highly outdated, often 2+ years old.
For example, as of November 2023, ZipRecruiter reports that the average hourly compensation for a General Laborer is $17.15 phr when it is actually $19.46 phr. That is a difference of $2.31! $2.31 phr equates to an additional $92.40 per week and over $4,800 per year. Guess what, if your using outdated pay information and offering $2.31 phr less than the competition down the street, you will NEVER fill your open roles. The fastest way to lose a good employee is by failing to stay up to date with pay rates.
Don’t worry, there’s good news. Thanks to BlueRecruit’s partnership with FieldPulse, you will now receive the latest pay and workforce data from across North America every quarter. Afterall, growing and running your business is hard enough, let us tech folks handle the data crunching for you!
The skilled trades face a critical juncture where business owners must reassess their approach to compensation. Failing to address the issue of stagnant pay rates in the face of inflation not only jeopardizes the livelihoods of skilled workers but also undermines the overall health and sustainability of our industry. It’s imperative for leaders to take proactive steps to ensure fair and competitive compensation, thereby securing a prosperous future for workers, businesses, and the trades as a whole.
This is a guest post written by:
Rich Camacho, CEO and Co-founder of BlueRecruit
BlueRecruit is an online platform that matches skilled tradespeople to hiring companies based on the experience & certifications in demand. Their database of skills and certifications provides the perfect match between job seekers and employers. With experienced candidates in 15 different industries including Construction, Automotive and Home Care, they have the skilled workers you are looking for.