Here at MAU, we believe every working person deserves a living wage. We hold all of our clients to these same standards to ensure that we’re making the lives of workers better and the lives of business leaders. Raising wages is not only effective in fighting poverty and improving the quality of life for employees, but it also boosts retention, applicant flow rates, and overall job satisfaction. In the current climate of the Great Resignation and looming recession, it’s more critical than ever for employers to prioritize wage increases.

When working with clients, MAU offers a data-driven approach to increasing wages by evaluating the market, occupational, and competitor data. Our recommendations aren’t pulled from thin air; they are backed by sound research and decades of experience.

In 2022, we helped 18 client sites raise their wages by more than $1. Six of these clients consistently have more than 40 associates, creating a statistically significant (and measurable) trend.

Of the clients that have more than 40 associates and raised their wages more than $1, the majority of them saw:

Digging Deeper

In Atlanta, GA, Client A increased their wages on January 1, 2022.

$15.00 → $17.50 (+$2.50)

• • Fulton County Living Wage: $19.02
  • Client A needs to increase wages another 9% to reach a living wage.

In Columbia County, GA, Client B increased their wages on March 13, 2022.

$15.50 → $18.00 (+$2.50)

• • Fulton County Living Wage: $16.07
  • Client B’s current wage is 12% above the living wage.

In Berkeley, NC, Client C increased their wages on May 23, 2022.

$16.19 → $18.25 (+$2.06)

• • Henderson County Living Wage: $19.60
  • Client C needs to increase wages another 15% to reach a living wage.

In Charleston, SC, Client D increased their wages on February 28, 2022.

$14.00 → $16.00 (+$2.00)

• • Charleston County Living Wage: $16.42
  • Client D needs to increase wages another 21% to reach a living wage.

In Coweta County, GA, Client E increased their wages on January 1, 2022.

$16.50 → $18.00 (+$1.50)

• • Coweta County Living Wage: $19.02
  • Client E needs to increase wages another 6% to reach a living wage.

Mindset of the Market

Earlier this year, MAU released results of a survey, reflecting the Mindset of the Market, to help our internal teams and clients better understand the shifting desires of the workforce. We were searching for an answer to the question, what is the most crucial thing to workers? A cross-departmental team built the survey and distributed it to our massive database of workers, compiled the responses into actionable data sets, and went to work.

Forty-two percent of respondents cited “Time with My Family” as the most valuable when it comes to work, with “Work/Life Balance” right behind it at 26.02% and “Salary and Compensations: at 25.03%. When asked the biggest consideration when it comes to work schedule specifically, ”Salary and Compensation“ was indicated in 28.63% of responses, with ”Work/Life Balance“ coming in a close second at 27.52%.

The top response when asked about the most significant consideration when it comes to work schedule was salary and compensation. While work/life balance came in at a close second, competitive compensation will undoubtedly continue to be on the minds of the workforce. Where there are gaps in desired schedule and shift specifications, compensation could help bridge the gap, particularly when it comes to recruiting new talent.

The popular approach to combat this wave has been raising wages. However, the data we’ve gathered implicates that wages are not enough to attract workers. The worker’s priorities have shifted, and businesses need to assess their fundamental approach to hiring and workplace culture in order to halt the mass exodus. Implementing more flexible schedules can be much more challenging than raising wages, but the increased time investment will be worth the return of increased retention and applicant flow rate.

Thinking Bigger, What Can You Do Beyond Wages?

A decent wage is arguably the bare minimum when it comes to attracting and retaining employees. There are a myriad of others ways employers can add value to their positions beyond raising wages. More money is great, but what about more time, more flexibility, more support, more balance?

Here are some ways employers can support their workers beyond wages:

Improved benefits

• • According to a survey conducted by Glassdoor, about 60% of people report that benefits and perks are major factors when considering whether to accept a job offer. A majority of respondents reported that flexible hours, more work-from-home options, and unlimited vacation time could give a lower-paying job an edge over a high-paying job that offered fewer benefits.

Flexible hours/more PTO

• • Companies that offer employees flexibility in the form of telecommuting, unlimited PTO, and flexible scheduling.   Flexibility has also been shown to reduce workplace stress, boost mental well-being and encourage productivity. (Forbes)

Family support

• • The United States is the only developed country that does not offer paid parental leave, according to The Council of Economic Advisers 2014 report. Currently, only 11 percent of private-sector employers choose to offer formal paid leave geared specifically to meet family needs.

Reskilling potential

• • 74 percent of employees who haven’t received any reskilling or upskilling training would prefer to work for a company that provides learning opportunities.

Sense of Purpose

• • According to Mercer, thriving employees are three times more likely to work for a company with a strong sense of purpose. However, only 13% of surveyed companies offer an employee value proposition (EVP) differentiated by a purpose-driven mission.

Ensuring all employees earn a living wage is the first step towards beating the Great Resignation and future-proofing your business. Workers at every level are essential in the manufacturing space and should be compensated accordingly. In our efforts to make lives better through equitable pay and improved work-life balance, we’ve helped our clients continue growing during a difficult economic season.

Is your business ready to make a change? The time is now to take the first step toward a more resilient future.