How Wage Data Can Help You Attract and Retain Top Talent

Could your company’s wages be causing staffing problems? Many employers play a guessing game when setting wages, but Workforce Solutions helps accurately gauge Gulf Coast regional data for your industry. Wages are one of several factors in hiring and retention—others include a company’s reputation, the presence of competitors in the area, and working conditions. However, offering competitive wages is one of the most important ways to ensure your organization secures and keeps the best employees. Workforce Solutions’ regional wage data helps employers navigate this critical aspect of any recruitment and retention strategy.

What Kind of Wage Data is Available?

Workforce Solutions can help you navigate general wage data or custom data tailored to the Houston-Woodlands-Sugar Land metropolitan area. General wage data is raw information from the Texas Labor Market Information (LMI) database. You can access this data any time by visiting Texas Workforce Commission’s Texas LMI. Select the “Wages” tab at the top of the page and download “MSA wages by occupation.” The spreadsheet includes standard wage information for each Texas Metropolitan Statistical Area (MSA). You’ll look for the Houston-Woodlands-Sugar Land MSA and find general information for the region.

For a deeper dive, your Workforce Solutions specialist can help you access a custom wage analysis. Custom analysis features detailed percentile analysis, dynamic conditional formatting, inflation adjustment capabilities, and comprehensive job descriptions. You can compare data from live job postings to create a real-time comparison of your compensation packages against the current market. Specialists can help refine your data request and also help you address any recruitment and retention challenges.

Understanding Wage Data

Accessing and interpreting wage data can seem daunting, but Workforce Solutions makes it straightforward. Employers can quickly review local wage data to see where their company’s compensation falls relative to market standards. Wages focused between the 25th and 50th percentiles are usually the best for attracting and retaining talent.

Benefits of Using Wage Data

There are three main reasons to incorporate wage data into a company’s hiring and retention strategies:

1. Competitive Benchmarking
   Employers can compare their salary structures with industry standards, enabling them to make informed decisions about salary grades and adjustments. Benchmarking can help set competitive hourly rates, salaries, and raises. Workforce Solutions suggests benchmarking wages annually.
2. Attracting Top Talent
   By understanding what similar companies offer, employers can craft job offers that stand out in the market. Top talent will expect to be compensated at higher levels, and having realistic data helps employers set a starting rate that attracts high performers. For example, if the data shows their rate for a particular role is significantly lower than competitors, it’s fair to say they’re likely missing out on top-tier candidates. The employer can adjust its offer to be more competitive.
3. Better Retention
   Regularly updating salaries based on current wage data ensures that employee compensation meets or exceeds expectations. If wages are lower than the competition, there’s a good chance employees will jump ship for a higher wage at a competing company. If employees are paid market wages, they’re less likely to seek other employment. Retaining staff is good for the bottom line—it reduces turnover rates and the cost of hiring and training new staff.

Companies that benchmark their salaries can ensure their pay is competitive and attract top talent. By leveraging Workforce Solutions’ wage data, Houston employers are tapping into real-world data that can improve their hiring and retention practices. Contact our specialists at talent@wrksolutions.com or 713.688.6890 to start exploring wage data in your sector!