The arrival of spring is time to explore the salary market

ayshakhatunasha

Why does business need to monitor the labor market based on the results of the first quarter?

The study of wages at the end of the first quarter has its own characteristics. It is a kind of "barometer", according to the readings of which a business can determine how correctly the FOT (payroll fund), the virtual phone number service strategy of hiring, attracting and retaining qualified employees are formed, and, if necessary, adjust the corporate HR strategy for the rest of the year.


The arrival of spring is time to explore the wage market. Photo 1
Salary monitoring is a “must have” for companies competing in the labor market. The research is based on the collection, analysis and interpretation of salary data and compensation packages for certain positions, types of work in certain industries, regions or companies. The results obtained help identify trends in salary growth or decline, as well as assess the competitiveness of their own salary offers.

The labor market is subject to constant fluctuations, so it is effective to analyze salary research in dynamics based on updated data in order to “keep your finger” on the pulse of changes. The recommended practice is to conduct an analysis at the end of the first quarter and in the third-fourth quarter of the year, but each company may have an individual approach to the frequency and need for conducting research.

Why these specific time frames?
The last two quarters of the year, depending on the business model, are the time to make plans for the next year. The results of salary monitoring during this period will help in forming the company's budget and personnel policy for the next 6-12 months.

At the end of the first quarter, the business understands which forecasts and plans made in the previous year were confirmed and worked, and analyzes current changes in the market. The result of monitoring wages at the end of the quarter gives the company the opportunity to assess how correctly the payroll fund (FOT), the hiring strategy, the effectiveness of attracting and retaining qualified employees are formed, and also to adjust the corporate HR strategy for the rest of the year, if necessary.

What is special about the first quarter of the year?
The arrival of spring is time to explore the wage market. Photo 2
The end of the first quarter is the time when many companies complete the audit of financial, administrative and economic results of work for the previous year and finalize the formation of the payroll.



The "high" season on the labor market opens at the end of January and the beginning of February. Job seekers who have decided to change jobs have waited for the payment of annual bonuses for the previous period and are concerned about new employment. Companies have stepped up hiring after the winter lull. Businesses that value seasonality, such as tourism and construction, are starting to look for employees for the spring-summer period. The combination of these factors affects salary offers and increases competition among both candidates and employers.

At the end of the first quarter, companies analyze competitors' actions on wages for the past period and compare their own plans for salary offers with market ones to understand their attractiveness for future and current employees. Conducting research by the end of the first quarter will help optimize the budget for wages and hiring for the rest of the year, will allow you to allocate resources more efficiently and avoid unexpected costs.

If you need to conduct monitoring quickly and efficiently, contact the analysts of the Administrative Resource.