Compensation is not the differentiator – but it does help when reeling in talent in a tight labor market.
That’s the take of a group of economists and executives who said that, by and large, the labor shortage is not going away in 2022.
Speaking Friday at the 20th Annual Economic Forecast Forum, a program of the North Carolina Bankers Association and the state Chamber of Commerce, experts talked talent and the “800-pound gorilla riding an elephant in the room,” also known as the rise of remote work and working from home.
Echoing statements made at other recent economic outlook events, economists told business leaders to get creative in order to fill job openings.
Harry Davis, an economists with the North Carolina Bankers Association, said low wages won’t cut it when it comes to hiring. He told business leaders not to look at federal wage mandates – that those are actually meaningless. And employers using those as a guidelines are the ones with the most help wanted signs.
“The minimum wage in the United States is set by Walmart and Amazon and Starbucks,” he said, noting that while people were once being paid between $8 and $10 per hour, now they’re expecting minimums of $15 to $16.”
But it’s not just dollars.
Eugene Flood, managing partner of Next Sector Capital, said other categories include work-life balance and flexibility.
“It can’t just be, I’m going to be locked to my desk for eight hours a day,” Flood said.
Flood said successful employers are also focusing on their employees well-being – from child care and healthcare support to personal growth opportunities. But he said it also comes down to the concept of “meaningful work.”
“A lot more we are hearing from young people that the job I do … what the company works for and stands for has to be meaningful to me,” he said.
A big word employers will keep hearing in 2022 is "flexibility."
Brian Leary, COO of Raleigh’s Highwoods Properties (NYSE: HIW), called the work from home movement the “800-pound gorilla riding an elephant in the room.”
He doesn’t see WFH sticking for most workers and companies – “Does it still feel like you’re working from home, or does it feel like you’re living at work?” he asked.
But he did say “flexible” working – hybrid approaches – are here to stay.
“The genie is not going back into the bottle with regards to flexible work,” Leary said.
Companies that really want to win need to take a holistic approach. Flood mentioned that along with health care, child care support could also make an employer stand out.