Is Your Firm Due for a Salary Review?
Hiring is tight across the industry. Firms are offering higher compensation to attract the best talent. Minimum wage increases just became law in 18 states. The new tax law has raised expectations that some of the tax savings for businesses will translate into higher wages for workers. If they haven’t yet, these recent developments are going to put pressure on your firm to adjust salaries upward this year.
Deciding when and by how much to raise salaries across the board can be tricky. Most A&D firms operate on tight margins. Very likely your firm is already facing higher materials and outside labor costs. Budget-conscious clients may decide to delay projects if they feel the cost is too high. So, do you pass salary increases onto clients or absorb them internally, hoping that additional volume of business will cover the added expense by the end of the fiscal year? If the latter, how should you time increases to take effect?
If you are planning on adding staff this year, you almost certainly will need to offer a competitive compensation package. In order to retain current employees, you will need to make some adjustment to their compensation as well. That, in part, may depend on the type and level of positions you will be recruiting for and what additional benefits your current staff will consider meaningful.
For all these reasons, now is a good time to conduct a firm-wide salary and compensation review, if you have not done so in the past year or two. You don’t want your best performers to choose to leave the firm for greener pastures just when you need them the most. We at DMC have the industry knowledge and proven experience to help you assess your current compensation structure and make suitable adjustments to respond to the current situation and plan for future growth. Contact us for a confidential consultation regarding your human resource needs.