Minimum salary hike next year, what are your options?
Sure everything is getting more expensive these days and so are the employees. A recent research shows that the minimum salary is getting hike by 4% in 2015.
Out of 70 companies, 63 companies said that they are willing to hike the minimum wages for the employees. The following reason causes the hike.
- Increasing the requirement of the skilled employees.
- Huge skill shortages forcing hike of the skilled employees.
The Director of the Research Company said, “We have done survey on few MNC companies which are diversified into various categories. They are certainly lacking of skilled as well as experienced employees which will make them rise in the salary. Also, they are lacking basic labour skills. Raising the wages will attract more skilled labours as well as basic labours which can fulfil their requirements.”
So what alternatives are there for the company?
According to Mr Smith, HR department of company need to look at their job board strategy and alternative sourcing methods. For the time being, it would be worth getting your job board suppliers to lock-in their rates before Christmas. But a long-term solution would be to rely less and less on job boards as the sole answer to your problems. Using social media networking and free job sites might be a good way to let people know about any openings, but it comes at its own price, your time.
Perfect solution is outsourcing. The rise of back-office recruitment support services has drastically changed how recruitment agencies engage job seekers and fill new positions. Under this model, outsourced head-hunting becomes a more affordable and effective way to find and close a vacancy. Unlike expensive job boards, budgets can be set from the onset linked directly to results that make it affordable for agencies to find suitable outsourcing companies without using more expensive and less reliable options.
Through outsourcing, you can hire skilled and experienced professionals for your required work. There are outsourcing companies with various skills who can work for companies more efficiently than the employees. The main reason behind this is the experience and concentration on a specific profession/skill. On-site employment may cause you much man-power; infrastructure and time whilst outsourcing may set you worry free regarding the non-core activities. You just need to hire a specific professional for the department to whom the outsourcing company will report. This will definitely save companies a lot of time as well as cost.