Companies these days are under tremendous pressure to measure and quantify their human capital. As a result, they need to focus more on the skills and knowledge of the workforce. However, surveys show that most companies worldwide fail to manage their human capital. Moreover, very few of them have developed a reliable strategy for measuring the effectiveness of their employment strategies.
These days, employees are more concerned about whether a prospective company provides a fruitful career or may lead to a dead-end job. Therefore, companies need to develop actionable metrics on employee mobility and retention. Experts at Global Investment Strategies believe that effective professional development ensures the better financial performance of employees. Therefore, they prefer focusing on internal mobility at organizations to create clear paths for high-quality jobs.
Recent surveys show that income inequality has increased considerably within the United States due to the pandemic coronavirus. In addition, the labor market is experiencing severe issues, and employers are finding it difficult to get experts for entry-level roles. If your company is looking for some reliable solutions to talent acquisition, the first step is to improve job quality.
When we talk about job quality, it mainly links to the percentage of workers who earn local living wages and healthcare facilities. The new job opportunities created year after year are expected to generate payments above the local living wage. At the same time, companies need to analyze mobility concerns in the industry. It is essential to analyze the stats on how many workers in the past were working on the minimum living wage and whether they considered switching to other companies for a better hike. Specifically, managers need to understand how many workers earning wages lower than the expected local living range left the company before one year or second anniversary.
Another vital aspect that demands your attention is job equity. The companies need to understand the demographic composition of the high-wage occupations on the premises and should be compared with the local labor pool. In addition, companies need to analyze mobility rates from different demographic groups. These metrics are essential to knowing how people contribute to the organization. Still, it is also important to research who is experiencing growth and who is stuck somewhere in-between.
As per a survey conducted recently on a food service company, training expenditures were more on low-wage workers. But unfortunately, most of them left their jobs soon, and the remaining didn’t experience any hike in salary. Reports show that only 17% low wage workers were able to experience a considerable pay rise.
The outcomes do not go well with the firm’s commitment to employee training. Further analysis shows that the higher-wage workers are more likely to take advantage of the training offered by the company. These examples show that it is essential to implement thoughtful human capital management strategies while bringing employers and employees on profitable grounds.