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Question

What Trends Are You Seeing in Market/Wage Inflation and What Are You Doing About Them?

Kevin Anderson's picture
President CVG

CVG is a leading North America workforce solutions provider to the Energy, Oil & Gas, Industrial and EPC industries. Kevin has had a lengthy and distinguished career that spans over 25 years...

  • Member since 2020
  • 11 items added with 18,074 views
  • Jan 6, 2022
  • 361 views

As I continue to read the economic forecasts for 2022 I certainly do not want to panic, but I have noticed in the industry that wages & benefits are increasing and my own pocket is taking a hit on groceries, fuel, etc. 

Question:

1. Is your industry experiencing wage inflation?

2. Any creative strategies that have been implemented and or will be implemented for combating wage inflation?

3. Will budgetary dollars be spent on RPO, MSP, VMS outsourcing options?

Thank you for the feedback and discussions.

Kevin 

 

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Wages are growing, yes, and everyone is feeling the economic pinch with groceries and fuel.

 

Agreeing with Dana that the short term focus on the bottom line can lead to losing legacy or institutional knowledge and they're 100% correct that from a Talent Acquisition/HR perspective, you're incurring the cost of the search, placement, onboarding, and training of new personnel with each employee departure. During the talent search, also consider the opportunity cost/lost profit for lost productivity.

 

While roles are vacant we're asking more from a team with less resources while also informing internal company perspectives about professional development and opportunity for growth with the actions you take to backfill; thinking about promoting talent from within (when feasible) versus outsourcing or an external hire.

 

Beyond the savings of retaining those with the historical perspectives there's also an opportunity to retain and  position senior staff to develop less experienced employees leading to developing your own internal talent pipelines. Developing talent internally results in cost savings, a boost to internal morale, and it improves your reputation in the job market. For example, voluntary turnover at Edison is less than 6% and we were just named to GlassDoor's Best Places to Work list; I'm mentioning that on every candidate call and the response is very favorable 10 out of 10 times.

 

Thinking creatively I'm seeing this as an opportunity to re-contextualize "wage inflation" as "wage growth" and reframing it as a way to both retain and attract top talent, become an employer of choice, and save money all at the same time.

The main issues is what does it take to keep what you have so you don’t lose tribal knowledge.  If you have to pay more think of what it will cost you if you have bring on a new hire and what it would take to train them.  That way you can look at the bottom line and I think you’ll find it’s worth paying more for the person that is already in place.

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