22 The rising costs of consumer goods and a tight labor market are leading to increased wage pressure for Kansas banks. Individuals are leaving their jobs at historically high rates as they pursue a career change and/or re-evaluate what they want to be doing in general. Workers are more empowered to not accept wages and working conditions that have been deemed acceptable in the not-so-distant past. “The pressure is real,” says Doug Wareham, President and CEO of the Kansas Bankers Association. “It’s just a very competitive market.” Wareham says coping with wage pressure is a regular topic of discussion during association board and committee meetings across Kansas as bank leaders try to figure out how to best navigate the challenges of the changing market. Wage analysis Increased wage pressure is leading to a general uptick in businesses conducting a wage analysis, either on their own or with the help of a third-party service provider. One of the most common requests that Syndeo — an outsourced human resources service provider — is getting from its clients is for assistance conducting an unbiased wage analysis. That discovery often involves determining whether a company’s base pay is within an acceptable range for the market conditions and making adjustments accordingly. A wage analysis could also take the form of re-evaluating a salary being offered for highly specialized or otherwise hard-to-fill positions. A wage analysis should also be conducted for non-exempt employees. These types of pay-structure assessments may have to be made more frequently as markets change and wage pressures intensify. Employers are increasing their base pay, often in conjunction with offering sign-on bonuses, in hopes of attracting more job candidates. Kansas banks also are taking a hard look at whether their wages are competitive in the market, with many increasing rates for employees in response to increased wage pressure. Wareham says in some cases banks have increased the starting wage for entry-level tellers by $2 to $4 per hour. Wareham says that’s equivalent to what someone with three or four years of industry experience makes. Starting rates for other positions have increased as well. Increasing starting wages is important, but don’t lose sight of the retention piece of this equation. Hiring managers say employers should also apply similar diligence to evaluating the pay of existing employees. Why Kansas Banks Can’t Afford to Ignore Wage Pressure as Recruiting and Retention Challenges Persist By Josh Heck, Syndeo
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