1. Turnover Prevention Tools:
Career-pathing and
Mentoring in 2015
2014 came to a strong close, with U.S. employment reaching a
12-month average of 246,000 new jobs and unemployment
dropping to 5.6 percent. This sounds rosey, but it presents new
challenges in retaining an effective staff.
Confidence is growing in the labor market and as a result,
many companies plan to hire throughout 2015. With all of
this positive news on the job front, employees might have
expected to see upward movement on salaries and wages.
However, most recent surveys and reports indicate
employers plan modest pay increases.
In light of this, how will companies retain their best talent, when
below-market salaries are one of the top reasons employees
decide to leave?
Click to watch the video.
According to Towers Watson commentary regarding their 2014
compensation survey, the projected 3 percent pay raise in 2015
is a bit disappointing as the average employee is barely keeping
ahead of inflation.
Despite this reality, the most recent MRINetwork Recruiter
Sentiment Study, found that although improved compensation
and benefits are a leading factor for candidates considering
changing jobs, the top reason that candidates leave is because
of clear advancement opportunities elsewhere.
So what does this mean for employers?
Companies may be at greater risk of losing their top
performers, but the wage issue can be averted by focusing
on career tracking, mentoring and training programs.
Advancement to a more senior role not only connotes
greater responsibility, but also higher pay, or at least the
long-term potential to earn more.
VOLUMEIXISSUE2February6,2015
© 2015 Management Recruiters International, Inc. An Equal Opportunity Employer
"The days of requiring employees to take on the workload of
people who either resigned or were laid off, without additional
pay, are behind us," says Nancy Halverson, vice president of
global operations for MRINetwork. "Today's workers want
recognition for their contributions, and they expect to see a
clear path for how added responsibilities will enable them to
advance within the company."
Ultimately the salary discussion has more to do with an
employer's culture of coaching, mentoring, training,
recognition and evidence of upward mobility, in addition
to how well the organization communicates and sells
these attributes, both internally and externally. "The goal
should be more about creating a 'best place to work'
environment that is highly desired by candidates in the
marketplace," adds Halverson. "This is really what the
future of recruitment and retention is all about."
Advancement opportunities and career-pathing will become
more important as Baby Boomers retire and Millennials
become the majority in the workplace. This generation is
especially focused on gaining experience that can be
leveraged to make the next career step, which is why job
changes after 2-3 years are more common. Companies that
provide the mentoring and training that Millennials crave are
not only working toward retention of their brightest talent, they
are grooming the future leaders of the organization.
Halverson provides the following tips for establishing and
promoting career-pathing and mentorship programs:
 Brainstorm how your organization can develop these
programs, if they don't already exist. Consider how
they can be leveraged to support various groups
within your workforce including minorities, women
and junior to mid-level management candidates.
 Begin discussing internal mobility programs during
the interviewing and onboarding process.
 Promote the programs through multiple internal and
external channels to create stories about employee
advancement within the company.
Although career growth is most important to candidates,
it doesn't mean that companies can make wage
increases a last thought. Salaries are going to have to
come up to attract top performers. "However, no amount
of money will make them stay in a role that appears to
have no future," concludes Halverson. "That's where the
power of career-pathing kicks in."
Source: Department of Labor
Submitted by: Joe Cianciolo, Senior Account Manager
Management Recruiters of Cleveland-
Southwest
>Experts in Global Search
(330) 273-4300 ext. 109
JoeCC@MRCSW.com

2. January's labor situation for the U.S. was more than just a
single piece of good news, according to Bloomberg Business.
The source said it marks a sea change in the labor market in
which the middle class and working class are finally starting to
get ahead. The unemployment rate increased slightly, but gains
were still made across a variety of industries. Overall,
economists noted that January's numbers show impressive
economic strength.
Unemployment rate rises slightly, but labor participation
improves
A total of 257,000 jobs were added and the unemployment figure for
the start of 2015 came in at 5.7 percent, a .1 percent increase from
December's rate of 5.6 percent. During January, the nation's overall
workforce grew by 703,000 people. This prompted labor force
participation to increase slightly, from 62.7 percent to 62.9 percent.
Industries experiencing gains
Although the unemployment rate remained largely unchanged, a
number of sectors saw their payrolls rise. The retail industry saw the
most growth, adding 46,000 positions. Within this sector, sporting
goods, hobby, book, and music stores added the most jobs, though
motor vehicle and parts dealers and non-store retailers also
experienced notable growth.
The construction sector grew by 39,000 jobs, with gains in both
residential and nonresidential building. Within the sector,
specialty trade contractors employment trended up, added
13,000 jobs.
The healthcare sector, which has been steadily expanding for
months, added 38,000 more jobs during the month of January. The
majority of these positions came from doctors' offices and hospitals,
although gains were also seen in nursing and residential care
facilities. Financial activities employed an additional 26,000 workers
this past month, while the manufacturing industry grew by 22,000.
Other industries that experienced job creation were
professional and technical services, which added 33,000
workers, and food services and drinking places which added
35,000 jobs.
Wages on the rise
Compensation rates increased in January, following a notable
decline in December. While the end of 2014 saw a decrease of 5
cents, January's average hourly wage went up by 12 cents, coming
to $24.75. Average hourly earnings for private-sector production and
nonsupervisory employees went up by 7 cents and currently rests at
$20.80.
Fortune magazine noted that these much-welcome wage increases
have been anticipated by economists. As compensation rates climb,
it is more likely that the Federal Reserve will raise interest rates.
Numbers exceed economists’ expectations
Bloomberg reported that January's report impressed economists,
who had predicted an increase of 228,000. While the
unemployment rate climbed slightly, the source noted that it was
likely due to the increasingly positive labor situation in the U.S.,
which has inspired more people to return to the workforce.
The source explained that inflation rates have been kept low due to
increasingly weak overseas economies. Inflation is expected to
continue to go down as 2015 continues, and industry professionals
anticipate that the U.S. will soon have an unemployment rate as low
as 5.4 percent.
The full Bureau of Labor Statistics report can be downloaded here:
EMPLOYMENT SITUATION REPORT JANUARY 2015