The volatility of job distribution by industry during the COVID-19 pandemic was nearly unprecedented. With the US labor market continuing this transformation, the shift in prominent industries and changing consumer patterns has led to irrevocable change in workforce composition. For example, in the middle of last year, the leisure and hospitality industry lost over three million jobs within a few months’ time and now these jobs are returning to the marketplace. Nevertheless, as job openings soared in the second quarter of 2021 to a record 9.3 million jobs, unemployment remained at 9.3 million (and still over 3 million jobs compare to pre-pandemic levels). While not all 9 million job seekers can fill all current job openings, the discussion surrounding skill gap, labor supply, and job availability is both timely and necessary. Two questions come to mind:
1. Can employers revisit their classification practices to better align available skills to skills that are immediately required?
2. Can HR departments’ compensation practices adapt to new realities of labor markets (e.g., rapid change in job values, pay equity requirements, inconsistent wage inflations)?
This presentation will examine post-pandemic labor market conditions and market influences on classification and compensation designs.
Key Learning Points:
1. Statistics and fundamental trends of the changing labor markets.
2. Examine classification and compensation practices that may become instrumental in navigating through these changes (wage market analysis, pay equity audit, re-designing job architecture, job evaluation).
Practical solutions to re-adjust classification and compensation practices and examine tools and techniques that can be critical in this process.
CPS HR Consulting is a self-supporting public agency providing a full range of integrated HR solutions to government and nonprofit clients across the country. Our strategic approach to increasing the effectiveness of human resources results in improved organizational performance for our clients. We have a deep expertise and unmatched perspective in guiding our clients in the areas of organizational strategy, recruitment and selection, classification and compensation, and training and development.