Table of contents:
- Monitoring the labor market
- What is it for?
- What does ignorance of the situation on the labor market lead to?
- Where do I get the data from?
2023 Author: Henry Conors | [email protected]. Last modified: 2023-11-26 12:05
Monitoring of the labor market is an important process. It is of great importance for both employers and employees. Everyone seeks to find out what the average wage is on the labor market in order to sell their labor as profitably as possible if it is an employee, and what competitive wages to establish in the case of an employer in order to attract as many skilled and conscientious personnel as possible.
Monitoring the labor market
In order to know and correctly assess the state of the labor market, it is necessary to carefully study it and constantly monitor the situation. However, here the question arises: where do you get information from and how is the labor market monitored?
To be aware of the changes that are taking place, you need to know the wages of various enterprises and firms, how they depend on the specifics of work, industry, type of economic activity, etc.
Monitoring of the labor market and wages is important primarily for employers. It is they who study supply and demand, form salaries for their staff, and are an important element in the system of relations.
What is the benefit of labor market monitoring? First, one can evaluate how attractive the amount of money offered by the employer to the employee is. Second, compare your firm's wages with others, thus learning about the competitive environment. Thirdly, find out how the price of a specialist differs depending on his qualifications. Fourth, the employer can see and set salary limits for employees of different classifications and different levels of training.
What is it for?
Constant and high-quality monitoring of the market, in addition to the above advantages, helps the company to keep abreast of current changes that are taking place in the labor market. The employer gets the opportunity to independently determine the boundaries of the salary of an employee of a certain link, while doing this systematically so that the salary level corresponds to the average in the current period.
For example, every year, taking into account inflation, an employee needs to index wages. The employer is forced to raise it so that his employee does not go to the firm of competitors. However, by monitoring the situation on the market, he can track the dynamics of wage increases in different companies in any industry.and, based on this data, decide not to index wages, because in this case it makes no sense for a specialist to leave for a new, unfamiliar company with the same conditions.
One of the decisive factors in hiring for an employee will be the assessment of the company's salary, comparing it with other similar firms and industries. For an employer who decides what salary limits to set for a particular position, monitoring the labor market will be an important factor.
Accordingly, from here we can draw conclusions about how the situation of hiring will develop if both subjects of labor relations analyze the current situation.
When an employer starts searching for applicants for a vacancy, he puts forward requirements for a future employee, i.e. indicates the desired gender, age, level of education and qualifications, knowledge of foreign languages, additional internships, diplomas, etc. From here, taking into account the average wage in the labor market, he sets the boundaries of wages, introduces a bonus system, and much more. The applicant, in turn, assessing the requirements, puts forward his candidacy only if he understands that he meets the requirements and will receive a really decent salary, more than in other companies.
What does ignorance of the situation on the labor market lead to?
Suppose the employer has monitored the situation on the labor market. The result protocol makes it possible toyou can quickly orient yourself and find a suitable candidate. However, there are times when an employer wants to set the wage range itself. In such situations, like any other entrepreneur, he wants to save money, find a qualified specialist for less money. Having set the price for an employee below the market, the employer will be forced to look for an applicant from a month to a year. Since a person always looks at various ads, therefore, he will see the difference in the conditions offered and will not want to associate himself with a similar company.
Knowing the level of average wages in the labor market, the employer sets either the same amount or a little higher in order to take a specialist from competitors.
Sometimes when expanding a company and opening branches, directors and managers have to quickly search for employees. In this case, monitoring of the situation on the labor market will play a big role.
Where do I get the data from?
This is the most important question for any employer, and even more so for a job seeker. If we take a standard employment situation, then everyone knows that when looking for a job, any person looks at vacancies in newspapers, on websites, and joins the labor exchange. By studying the proposals of employers, the applicant himself can form a current picture of the labor market. News and information resources also give an idea of wages in different areas and types of economic activity. For companies, it is possible to contact recruitment agencies and, for a certain cost, monitorsituation in the labor market. The official websites of the Federal State Statistics Service, as well as the Ministry of Economic Development of the Russian Federation, allow you to study labor market data and keep abreast of the current situation.
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