Using ERC to Hire for a New Position

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Hiring a new employee can be challenging and time-consuming. ERC members have access to resources at every step to make the process efficient and effective:

  1. Writing the Job Description
  2. Determining the Right Compensation
  3. Posting the Job
  4. The Hiring Process
  5. The On-Boarding Process

Writing the Job Description

When creating a job description for a new job, using secondary sources of job information can help you better understand a position and the typical duties a person would perform in that role. ERC members have free access to Bloomberg BNA's Custom Job Description tool, which allows you to search a huge database of job titles and customize a description that fits your job.
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National, Local Health Insurance Premiums Increase

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In a report published jointly by The Kaiser Family Foundation and The Health Research & Educational Trust in October of 2012, organizations were asked about a number of practices and metrics related to employer provided health benefits. Participants indicated that their health insurance premiums for 2012 increased by approximately 4% nationally over 2011. More specifically, single coverage cost 3% more than in 2011 and family coverage cost 4% more. The report, 2012 Annual Employer Health Benefits Survey, notes that differences based on company size and geography have the most significant variation in the health insurance premiums reported.

A more local analysis of the current state of employer provided health benefits lends additional support to this claim with Northeast Ohio organizations facing much higher than 4% increases. Of the 100 organizations participating in the ERC/Smart Business Workplace Practices Survey, the average size was only 143 employees. With an average increase of just over 10% among a sample of 100 Northeast Ohio organizations, the size of the organizations surveyed may be contributing to these higher premiums.
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3 Reasons You're Losing Employees Because of Pay

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In this article, we explore three current and critical compensation problems that cause employers to lose talented employees. These issues include low salary increases, lack of differentiation in pay by performance, and difficulties finding the actual "going rate" for jobs.

Problem 1: Low or modest salary increases

Salary budgets have been lagging for 3-4 years, pay increase budgets are not growing rapidly, and the outlook for significant pay raises is fairly bleak. This means that your employees' salaries probably aren't growing. What happens when the market doesn't match what your employees want? Should you keep your pay practices firmly aligned with the market, or adjust them to what your employees want?
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Where Do Pay Adjustments Come From?

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As reported in Crain’s Cleveland Business in September of 2012, Northeast Ohio employers both gave and are projecting giving an average of a 3% increase across all job categories in 2012 and 2013, respectively. But how are these increases determined and what do they mean in terms of an overall investment by the organizations offering raises?

While the ERC Salary & Wage Adjustment Survey itself does not report on these specifics, it does specify that that this 3% increase accounts for any pay adjustment given during a 12 month period and could include any adjustments from general across-the-board or cost-of-living adjustments to merit based raises. Some additional insights can be drawn from another ERC survey published in early summer of 2012, i.e., the 2012 Pay Adjustment & Incentives Practices Survey. According to this survey, merit based increases are by far the most common method of determining increases here in Northeast Ohio, approximately 80% of respondents. Of those organizations providing merit based increases, a wide majority do so on an annual basis regardless of organizational size or industry type. Interestingly, cost-of-living raises were the least popular type of adjustment, coming in at just under 7%.

Based on ERC’s historical data trends for the Pay Adjustment & Incentive Practices survey, this strong preference for merit based pay adjustments is far from surprising. However, a steady decrease in cost-of-living pay adjustments over the past several years accompanied by a corresponding increase in the frequency of merit-based raises offers a clear illustration of the continued move towards pay-for-performance.

View ERC's Wage & Salary Adjustment Survey Results

The survey reports data from Northeast Ohio organizations regarding their actual and projected wage and salary adjustments.

View the Results

2012/2013 Salary & Benefits Budgeting Guide

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We’ve compiled a brief compensation and benefits budgeting guide to help your organization make important pay and health care decisions for fall 2012. The guide summarizes the latest and most important trends as of September, 2012 related to administering compensation and health care benefits, which affect your organization as it plans for 2013. 
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Raises Hit 3%, Projections Remain Strong

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In an economy fraught with ongoing uncertainty, Northeast Ohio employers hit a once seemingly insignificant milestone in terms of salary and wage adjustments for 2012 and 2013, 3% raises. The overall average actual and projected raises reported in ERC’s annual Wage and Salary Adjustment Survey both hit 3%, the first time both figures have reached the 3% mark together since 2008. Further optimism for 2012 can be found in projections for 2013, which indicate that of those organizations projecting raises for 2013, more than half are predicting at least 3% raises.

In terms of actual percent raises offered by individual industries, a 2012 article from Crain’s Cleveland Business cites ERC’s survey results, noting, “when it came to actual raises, service companies loosened the purse strings a little more than manufacturers.” However, there are positive signs for the manufacturing industry as well.
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HR Analysts Experience Job Growth Statewide

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In an era where an uncertain economy demands that business expenses undergo intensive financial scrutiny and metrics such as “return on investment” or ROI calculations are a driving force behind business decisions large and small, benchmarking trends in human resources is part of the expected norm.

From compensation and benefits analysis to a wide variety of workplace practices benchmarks, HR plays a major role in analyzing how your organization’s pay and benefits practices stack up next to the competition. Demand for this type of data driven decision making bodes well for the HR specialists whose major job duties involve analysis and reporting of these critical HR metrics.
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5 Measurements to Evaluate Salaries

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6 Tools to Evaluate Salaries

Does your organization know the health of its base salary program? The health of your base salary practices can easily fly under the radar if you aren't paying attention to certain important numbers. It may result in overpaying or underpaying employees, employees being paid outside of pay ranges, an uncompetitive mix of pay forms, or a low revenue return on your costly investments.

There are several "tools" (i.e. calculations or measurements) that you can use to evaluate the health of your base salary program, six of which are among those that most compensation experts agree are the best and most common tools to use.
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Financial Concerns Drive Innovation in the Workplace

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The results of the 2012 ERC/Smart Business Workplace Practices Survey demonstrate a commitment among Northeast Ohio employers to improving their workplaces despite and in some cases because of the financial challenges they face in today’s economy. While respondents indicate for the second year running that the economy is no longer their most pressing challenge, cost related challenges more generally such as funding, healthcare costs, controlling costs and financial stability are all among the top ten challenges reported by employers.

Perhaps the most striking fiscal measure being utilized to control costs reported by participants is layoffs. After a sharp decline in 2011, the percent of organizations anticipating layoffs for the coming year increased to 10.3%. However, it is important to note that while higher than 2011, this number still falls in line with pre-recession levels when double digit percentages were commonplace.
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Hiring Rates Improving In Transportation, Warehousing and Utilities Industry

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The July 2012 BLS Job Openings and Labor Turnover Survey reports that hire rates for the month of May saw little change when compared to the same statistic from 2011. However, one notable exception can be found in the area of Transportation, Warehousing and Utilities. This group of sub-industries experienced a 1.1% hiring rate increase over May 2011 with a 3.7% of all hires made in May 2012 falling into this industry breakout- approximately 180,000 individuals hired throughout the month.

While this industry is traditionally paid lower than many other hourly positions, a jump in hiring could reflect an increased demand for some of these more physically demanding jobs in the private sector. Reporting hourly wage data from the second half of January 2012, the 2012 ERC Wage Survey did in fact see a modest increase in pay for a number of these positions. For example, a Warehouse Worker earned a median salary $13.68, which is up about 12% from the 2011 survey results. Other positions, such as Drivers (Heavy: $16.25 and Local: $16.80) and Fork Lift Operators ($15.00) saw slightly lower improvements in wages, but do appear to be trending consistently upwards over the past several years.

View ERC's Wage & Salary Adjustment Survey Results

The survey reports data from Northeast Ohio organizations regarding their actual and projected wage and salary adjustments.

View the Results