A company can offer stellar benefits and workplace perks, yet money is still the decisive factor in enticing top talent. Now more than ever, companies are aiming to provide competitive salaries and raises because, in contrast with the past years, it is now the candidate’s market.
According to The Labor Department’s JOLTS report, for the first time in 20 years, there are more job openings and employment opportunities than there are workers. Experienced employees with extensive or niche skill sets are hard to find and hard to retain in today’s competitive work environment. For these reasons, companies are coming up with more creative benefits, extensive paid leave policies, and monetary incentives to increase their workplace appeal.
So how does the CPG industry compare with other industries when it comes to raises and bonuses? According to ForceBrands’ 2019 Talent Market Report, which surveyed more than 500 full-time hiring decision-makers and leaders across CPG, the industry takes the lead.
CPG is becoming more and more attractive to potential employees as it gives generous raises in comparison to the national average that hovers around 3 percent.
The highest raise percentage is in the cannabis industry (14 percent), with beauty and beer sharing the second place (12 percent, respectively). Wine and spirits’ annual raise average is at 8 percent, and the food and beverage industry is at 7 percent. The “green rush” of cannabis is nowhere close to slowing down, with the industry expanding further and attracting new candidates by offering competitive salaries, equity programs, and bonuses.
When it comes to giving a raise, companies across the CPG board consider a variety of factors. Job performance is the most important one across all verticals for obvious reasons, even though cannabis does put the skill set factor right next to it.
Other factors include company performance, rewarding retention, minimum wage compliance, cost of living, attrition prevention, internal pay inequality adjustment, tenure, and market rate inequity adjustment.
For more details about CPG’s average raise percentages and other insights into the benefits offered in the industry, download the report here.