How do you evaluate the labour market?
An organization’s compensation system is only as good as the data it has available to evaluate the labour market and the quality of the sources of the data. It turns out a good source of third party compensation data is the payroll companies. Take ADP for example.
There are some interesting labour market trends happening in the USA. According to ADP, about half a million U.S. workers left one job for another in the fourth quarter, up from 406,000 in the same period in 2015 and 365,000 two years ago. But ADP in the Department of Labour can give HR greater insight with information like this, as ADP also finds that more workers are shifting into new sectors, such as a marketing manager who leaves retail for finance.
HR needs to be aware of this type of data and trends. This type of data is suggesting that the USA is a long way away from the 2008 recession where they had their pick of employee talent. With this type of worker volatility of switching industries and not just jobs, combined with a USA unemployment rate at its lowest level in 43 years, these factors will surely affect an organization compensation system.
- What is Canada’s current unemployment rate? How will this affect an organization’s compensation system?
- Identify two other Canadian sources of Labour Market Data. Look them up and determine some of the labour market trends currently in Canada.