In the competitive hiring landscape of the United States, adopting a strategic approach for compensating employees is paramount for businesses that want to attract and retain the best talent. Employers need to stay on top of the compensation and benefit packages that will help them engage with a pool of highly-skilled workers.
Against this backdrop, the role of an Employer of Record (EOR) becomes increasingly important. EORs stand at the intersection of market trends and global talent pools, offering businesses a strategic advantage in the areas of of employment and compensation.
By leveraging the insights and data analysis capabilities of EOR platforms, companies can ensure their compensation packages are not only competitive but also compliant with labor laws.
What Is Occupational Employment In The US?
Occupational employment refers to the tally of individuals engaged in wage and salary work across different roles and industries, or within a specified geographical location. It reflects employment dynamics, such as the availability of positions, the qualifications required for these roles, and the distribution of wages among employees.
To retain the best talent in the industry, having a thorough understanding of these dynamics is a must. For instance, when an employee leaves, it can cost up to 200% of their annual salary to find and onboard their replacement, and this doesn't even include the less tangible but significant cost of reduced productivity.
Importance Of Understanding Occupational Employment Salary Ranges
If you want to hire US employees, it is crucial to understand the nuances of occupational employment and set competitive salary ranges. This alignment improves talent retention and fosters a commitment to fair and rewarding work environments. Here’s what it involves:
- Above-Average Wages: Google is a notable example of a tech company known for offering competitive salaries. Competitive wages and salary packages help Google attract and retain top talent, contributing to its status as a leading tech giant.
- Comprehensive Benefits Package: Beyond competitive salaries, companies like Costco provide a comprehensive benefits package with health insurance, dental and vision coverage, 401(k) plans with employer contributions, life insurance, and more. Such benefits are not only available to full-time employees but also to part-time staff, which is relatively rare in the sector.
- Employee Satisfaction and Low Turnover: HubSpot is recognized for its healthy culture, defined by values that guide the company's behavior from employee interactions to customer service. The company culture is not just about perks but also a set of values that are lived and demonstrated by the leadership.
In-Demand Professions in the US
The US Bureau of Labor Statistics recently released median salary band statistics for the country's most popular professions by projected openings for the decade between 2022 and 2032. Here are the key highlights for workers with at least a bachelor’s degree:
- Occupations that require a bachelor’s degree average 3.3 million openings each year and will grow faster than the standard for all occupations due to the higher creation of new jobs.
- General managers and operations will have the most job openings at the rate of almost 200,000 jobs per year.
- Software developers will have the largest number of openings from growth (41,000 each year), and also the highest median annual wage ($127,260). Elementary school teachers, except special education, had the lowest wage ($61,690) among the listed occupations.
- Business and financial occupations had a median annual wage of $76,850, which is significantly higher than the median annual wage for all occupations at $46,310.
- Within this category, specific professions such as accountants and auditors had a median pay of around $78,000, while financial analysts saw higher median earnings at approximately $96,220
The Role of EORs In Occupational Employment
Employers of Record (EORs) play a pivotal role in the global employment landscape, offering unique insights that extend beyond hiring, payroll processing and benefits administration. An EOR is a third-party organization that acts as the legal employer for international employees by streamlining hiring processes and ensuring labor law compliance —all without you having to set up a legal entity in the US.
Market Insights and Benchmarking
Beyond simple data from job boards, EORs possess an extensive knowledge base with real-time information on salary benchmarks, and benefits standards across various industries and locations. By leveraging this data, EORs provide businesses with critical insights that inform competitive salary offerings and comprehensive benefits packages.
Navigating Local Employment Laws
One of the key challenges of hiring US workers is gaining an understanding oflocal labor laws, tax obligations, and employment regulations across federal and provincial jurisdictions. EORs specialize in understanding and translating these regulations, which is invaluable for companies expanding into new markets or employing a remote and international workforce.
Strategic Talent Acquisition and Retention
To attract top talent, companies must offer competitive salaries and demonstrate a commitment to diversity, and the well-being of each team member. EORs aid in this endeavor by providing data-based insights on creating attractive employment offers and fostering a positive work environment that resonates with high-caliber candidates.
Customized Compensation
Understanding the nuances of occupational employment enables EORs to assist companies in developing customized compensation strategies.. Whether it's offering equity to a 10x software engineer or structuring a performance-based bonus plan for a sales director, EORs tailor highly customized compensation packages.
Beyond Just A Staffing Agency
EORs work with business clients in engaging with employees to ensure satisfaction with their roles, compensation, and work environment. This ongoing engagement helps identify issues early on, allowing for timely interventions to maintain high levels of employee satisfaction and engagement.
How To Utilize EOR Services?
Employer of Record (EOR) services offer a strategic advantage for businesses looking to align compensation strategies with industry benchmarks. Here's how companies can utilize EORs to ensure their compensation packages are competitive, compliant, and contributing to recruitment and retention of top talent in the US.
Step 1: Comprehensive Market Analysis
The first step involves conducting a thorough market analysis. EORs have access to extensive data on global salary trends, benefits packages, and compensation structures across various industries and locations in the US. By leveraging this information, businesses gain insights into the competitive landscape of compensation.
Step 2: Regulatory Compliance and Risk Mitigation
EOR services ensure that compensation strategies are not only competitive but compliant with local laws. This includes adherence to minimum wage requirements, overtime pay, benefits, and tax regulations. From job offers to employment contracts, EORs help businesses mitigate the risks associated with non-compliance.
Step 3: Tailored Compensation Packages
With a deep understanding of market standards and legal requirements, EORs work with businesses to tailor packages that are both attractive to potential employees and sustainable for the company. This involves balancing base salaries, bonuses, equity options, and benefits like healthcare, retirement plans, and paid time off.
Step 4: Implementation and Ongoing Management
Once the compensation strategy is established, EORs facilitate the implementation process. They also manage ongoing administrative tasks allowing companies to focus on their day to day operations while ensuring employees are compensated accurately and on time.
Step 5: Continuous Monitoring and Adjustment
The job market is dynamic, and compensation trends shift rapidly. EOR services include continuous monitoring of market trends and regulatory changes, allowing businesses to adjust their compensation strategies proactively. Regular reviews and communication with business clients ensure the company's offerings remain competitive and aligned with industry standards, helping to attract and retain talent in a changing market.
Why Borderless AI?
Employer of Record (EOR) platforms like Borderless AI are redefining how businesses approach the challenges associated with occupational employment. We provide a seamless, cost-effective solution for managing international teams in the US and transforming your compensation strategy.
- Integrating Cutting-Edge AI for Global HR: Borderless AI, with its pioneering AI agent Alberni, stands at the forefront of global HR solutions. Alberni's ability to provide instant answers to questions regarding global labor laws and compliance is instrumental for businesses aiming to offer competitive and lawful compensation packages.
- Generating Compliant Employment Contracts with AI: Alberni's ability to generate compliant employment agreements for new hires in over 170 countries is a game-changer for global businesses. This not only ensures legal compliance across jurisdictions but also creates custom compensation and benefits packages for employees worldwide.
- Employee Cost Calculator: Borderless AI's Employee Cost Calculator, provides businesses with a transparent view of the total costs associated with hiring employees in various countries. This tool is invaluable for aligning compensation strategies with budgetary constraints and market standards, allowing for strategic financial planning and forecasting.
- No Upfront Costs: Partnering with Borderless AI involves no upfront costs, which democratizes access to global HR services. This enables businesses of all sizes to utilize Alberni's expertise in analyzing and aligning compensation strategies without the burden of significant initial investment.
Borderless AI simplifies the management of global teams by providing a single platform for onboarding, managing, and paying international employees compliantly. Contact us today to explore how you can hire top talent worldwide.
Disclaimer
Borderless does not provide legal services or legal advice to customers, contractors, employees, partners, or the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
