Category: Talent Acquisition

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  • Inside the 2025 North Alabama Wage and Benefit Survey

    Inside the 2025 North Alabama Wage and Benefit Survey

    The 2025 North Alabama Wage and Benefit Survey, conducted by Horizon Point Consulting and hosted by NAIDA, North AlabamaWorks!, NARCOG, NACOLG, and seven participating counties, gives employers in our region valuable insight into compensation, workforce practices, and benefits. 

    With input from 152 participating organizations—including 81 manufacturers and 50 government contractors—this year’s report shows how pay and perk strategies are evolving across North Alabama.

    Who Took the Survey?

    Employers across diverse sectors contributed:

    • 152 total participants
    • 81 manufacturers
    • 50 government contractors
    • Representing Colbert, Cullman, Lauderdale, Lawrence, Limestone, Madison, and Morgan counties

    Hard-to-Fill Jobs

    Respondents identified persistent hiring challenges in:

    • Skilled trades and technicians, especially for off-hours and specialized roles
    • Engineering and IT
    • Finance, HR, and leadership
    • Production, warehousing, and frontline service roles
    • Education and hospitality support
    • Average last pay increase: 4.11%
    • Median last pay increase: 3.35%
    • Average next pay increase planned: 3.48%
    • Median next pay increase: 3.00%
    • Turnover: Down 16% from 2023—an encouraging trend across most industries

    Wage comparisons reveal moderate increases:

    • Accounting clerks: $23.00 to $24.48/hour
    • Customer service reps: $20.25 to $21.48/hour
    • HR assistants: $57,000 to $60,000/year
    • Production roles: $20.78 to $21.91/hour
    • Maintenance: $27.39 to $28.90/hour
    • Warehouse/logistics: $20.52 to $21.39/hour

    Some employers are adopting skills-based pay programs, offering:

    • $1.00/hour for learning additional skills
    • Maintenance progression increases of up to $5/hour based on testing and training
    • Pay raises tied to performance on a skills matrix

    A few employers are exploring non-traditional shift models:

    • Short shifts (3–8 p.m. options)
    • 8-hour formats instead of traditional 12-hour shifts
    • Part-time based on availability and business needs

    Benefits Overview

    • Average total benefit cost per employee: $14,098.61 (up 9.4%)
    • Individual medical coverage (median): $7,524.79 (up 15.8%)
    • Family medical coverage (median): $20,308.56 (up 18%)

    Non-Traditional Benefits Employers Are Offering

    In addition to traditional benefits, many employers are getting creative with their perks. Survey responses show a growing focus on holistic employee well-being, including:

    • Wellness Reimbursement Plans to cover the cost of fitness and personal health equipment
    • Charitable Gifts Matching to support employees’ financial support of community nonprofits, giving directly to organizations with personal meaning to internal staff 
    • Employee Stock Ownership Plan (ESOPs) increased this year, continuing the trend of giving employees more direct ownership in the success of the company. 

    These nontraditional offerings help employers stand out and signal a commitment to supporting employees beyond the basics.

    Paid Leave, Child Care, and Wellness Support

    31% of participating companies are offering Paid Family Leave for new parents after the birth or adoption of a child. The average leave time is 7 weeks, and 87% of participating employers pay a full 100% of salary. These stats are up from 2024. 

    13% of employers offer some type of Child Care benefit, primarily by offering an FSA or vouchers to nearby child care centers. This is up a bit from 2024. 

    53% of employers offer Remote/Telework employment options, most in a hybrid format. Additionally, 35% of employers offer Flex-Time, allowing employees to work alternate hours to accommodate child care and other needs.

    State-Funded Workforce Programs, Tax Incentives, and Child Care Credits

    • AIDT used by 18% of employers
    • Alabama Office of Apprenticeship: 15% of participants offer registered apprenticeships 
    • Existing Industry Training Program (EITP): only utilized by 4% of respondents with an additional 5% considering applying. 
    • Alabama’s Employer Tax Credit for Child Care is also gaining attention. It offers:
      • Up to $15 million in statewide tax credits in 2025, $17.5 million in 2026, and $20 million in 2027.
      • Small Businesses (fewer than 25 employees): Eligible for a credit equal to 100 percent of eligible expenses, with a maximum of $600,000 annually.
      • Other Employers (25 or more employees): Eligible for a credit equal to 75 percent of eligible expenses, with a maximum of $600,000 annually.

    However, only 1% of participants in this year’s survey have applied for the Child Care credit so far, and 53% do not intend to apply at all. 

    Why This Survey Matters

    With rising costs, shifting workforce expectations, and the competitive labor market, the 2025 North Alabama Wage and Benefit Survey provides critical benchmarks. It equips organizations with:

    • Reliable data for budgeting and planning
    • Insight into regional labor market pressures
    • A roadmap for strategic compensation and benefit design

    To learn more, access the full interactive survey reports via Sensible Surveys or contact the Horizon Point team for consultation and support.

  • Lessons from March Madness: Talent is Global

    Lessons from March Madness: Talent is Global

    Our crew is all about some March Madness. We have an extended family bracket competition complete with prize money and trash texting. The kids even get in on it. My bracket was shot pretty soon after the first round (I think I finished 33rd overall), but I still enjoyed watching the competition down to the final game.

    While watching the introduction of the starting five for the championship team, one thing stood out to me about the talent.

    Consider the starting five for Florida:

    Two of the five (or 40%) of the starters on the championship team are from outside the United States. Looking at the entire roster, 35% of the players are from another country.

    There is no doubt that Name Image and Likeness (NIL) has changed the game of college sports. But I would venture to guess that global recruiting is also a part of reshaping the game. NIL makes players more mobile, chasing the best deal, and players across the globe are mobile. Players are also having to compete with the best talent in the world, not just the best talent in the country – much less their own state! – for a chance to start on a championship team, or any team for that matter.

    If you are wanting to put together the best team at work, following the lesson from college basketball champions (and football!) may be wise. Don’t limit your search. Talent is global.

    One of the biggest lessons from March Madness this year is that excellence knows no borders. Whether you’re building a roster for the court or a team for your company, casting a wider net can bring surprising strength. Diversity of background, experience, and perspective can be the game-changer that sets your team apart from the rest.

  • What is Your Organization’s Employee Value Proposition?

    What is Your Organization’s Employee Value Proposition?

    Last week I joined Mary Ila at the AARC Annual Conference and had the opportunity to speak to leaders about recruiting and retaining talent in today’s workforce. Recruiting has changed drastically over the last few decades, from candidates having to convince an organization why they’re the best person for the job, to organizations having to convince candidates why they’re the best company to work for. Candidates today aren’t just interested in the money, but are looking at the employer’s overall Employee Value Proposition (EVP) or what the company can offer them that makes them an employer of choice. 

    An EVP are the unique benefits, values, and culture that the organization offers the employee in exchange for their performance and loyalty. There are six characteristics that organizations need to evaluate their EVP and assess where changes need to be made. 

    1. Compensation: While compensation is not the lone factor in a candidate’s decision to accept an offer, it is an important factor. You need to determine if your organization is going to lag, match, or lead the market. And sometimes this depends on the industry you’re in and why someone would work for your organization. For example, non-profits generally lag the market and pay around the 25th percentile, however, most individuals who work for non-profits know this and aren’t opting to work for a non-profit for the pay, but for the purpose. In addition to salary, what other compensation benefits do you offer? Are there opportunities for commissions or bonuses? How much does the company contribute towards benefits? 
    2. Benefits:  In addition to looking at what your organization contributes toward benefits, it’s also important to evaluate what benefits you offer? In order to attract talent in today’s workplace, you need to go beyond the basics. Are you offering tuition reimbursement, flexible spending accounts that help with childcare costs, employee assistance plans, and robust leave accruals? What about more unique benefits that set you apart? For example, I had a client that had a car detail company come in once a month and employees could get their cars washed and detailed while they worked. It was at the employee cost, but the detailer service gave them a discount, and just the convenience of it was a benefit to the employees. 
    3. Mission, Vision, Values: One of the primary factors that a candidate considers is the mission, vision, and values of the organization and how that aligns with their own mission and vision. A study conducted by Glassdoor showed that 77% of candidates consider a company’s mission, vision, and values before applying to a position. Does your organization have clearly defined mission, vision, and values? And how do you ensure they are communicated to individuals who are interested in working for your company?
    4. Culture: Having well defined mission, vision, and values is only the first step. Are you living them? Are you training employees on what your mission, vision, and values are and holding them accountable to them? Do your leaders model behaviors that exemplify your values? What is it about your company culture that is unique?
    5. Environment: When evaluating your work environment, there are two dimensions you need to consider – first is the physical environment. What is the physical environment that the candidate would be working in and what are the benefits to that physical environment? Are they able to work remote or hybrid, is the worksite location in a great area that offers amenities such as restaurants, shopping, etc.? If the candidate will be traveling to different worksites, what does the organization offer in the way of convenience and safety, such as a company car? The second is the mental environment. Does the organization support the mental health of its employees? Does the organization offer a psychologically safe workplace where employees are free to raise concerns, ideas, admit mistakes, etc. without fear of reprimand or retaliation? 
    6. Opportunity: How does your organization support employees professional development? Are there opportunities to attend training, conferences, earn certifications, or share their knowledge with others? Do you promote from within when possible and give employees opportunities for advancement? Do you allow employees to cross-train in other areas of the organization? And do you have conversations with your employees on what they want out of their career, where they want to be in three to five years and how you can help them get there? 

    Understanding your EVP and communicating it to candidates and employees can help ensure that you attract and retain top talent. If your organization has not evaluated its EVP, here is a worksheet to get you started. 

  • How to Get Millions Back in the Workforce

    How to Get Millions Back in the Workforce

    During the pandemic, it was estimated that between two and three million women left the workforce. While there are signs that women are returning towards pre-pandemic levels, there are still a variety of sectors, especially care workers, that have not recovered and signs don’t point to an optimistic outcome. 

    Why? 

    Women are largely those that leave the workforce to provide care for children and or the elderly. Providing care makes it difficult for women to work, especially in more traditional sectors where workers must be present and work hours that don’t align with school and care options. This is especially true for single mothers. 

    What should be done? There are many thoughtful people across the country that are working on this issue.  As you think about how your company and or community can support labor participation among women by tackling caregiving needs, here are some things to think about: 

    1. What is it that workers actually need and want when it comes to childcare?  In order to address caregiving, we must address quality and quantity and respond to what workers want and need when it comes to childcare.  For example, the West Alabama area has realized that blue collar workers want their childcare close to where they live, not close to where they work.  Whereas one solution would be for large manufacturing companies to build onsite childcare facilities, this would neglect to understand what the population they employ needs and prefers.  So they have launched an initiative to increase in-home daycares in their community.  You can learn more about their program in this Family or Group Childcare Homes Workbook.

    In addition, employers across the state are looking into options like Tootris to provide a customized approach to childcare instead of a one size fits all approach (and most likely saving millions by outsourcing the access to childcare).  In this model, Tootris helps families find childcare that meets their needs through an online network and then the employer provides a financial subsidy to the employee through Tootris to help pay for that childcare. 

    Finally, we also need to consider what people need when it comes to carrying not only for children, but also for aging and/or disabled loved ones.  Often, this is largely left out of the discussion when seeking to address the labor participation issue. 

    1. It is an affordability issue.  Systems like Tootris provide a means for employers to help offset the cost of childcare.  And to be sure, quality child care is expensive.  My youngest child just transitioned from a high-quality childcare program to a public school Pre-K and what we paid for that childcare now almost pays the mortgage on our home each month.  

    Some states are getting involved to try to figure out how public-private partnerships can make an impact on labor participation through subsidizing the cost of childcare. The state of Indiana proposed splitting the cost of childcare in thirds-  employers paying one third, employees paying one third and the state paying one third.  Although this legislation has not passed in Indiana, the research behind it showed that the state would more than offset the cost through increased payroll taxes being collected by those that were able to return or enter the workforce because their childcare needs were now met. 

    1. We need to examine what it means to work and when and how we structure education with working parents in mind.  I mentioned that my youngest child transitioned into a public school Pre-K.  While this is saving us over $800 a month, he now has to be picked up by 2:15 pm each day.  Given he is in Pre-K, he is too young to go to the school’s extended day program. My husband and I are fortunate to have flexibility when it comes to working hours and we have retired grandparents available around the corner from the school we can call on when needed. My issues, to be sure, come from a place of unique privilege.  But when we think about childcare, we have to stop and realize that school days and work days don’t often align when it comes to hours and schedules.  My school aged children are out of school now for fall break- five days- and will be out of school a total of seven days before December (not counting Christmas Break).  People working in traditional fields do not have access to seven days off in less than a two month period. 

    I don’t have the solutions for this issue, but we need to be talking about it.  Employers need to consider what it actually means to get quality work done, and oftentimes we are too rigid on when and how this takes place.  Communities and school systems need to work with employers to consider the demands placed on working parents when every time you turn around, kids are out of school and the hours in which they go to school aren’t consistent with a traditional work day.  Our workplaces would be better off and our schools would too because families would be better supported. 

    What are you seeing that is helping to address labor participation due to caregiving issues?

  • The Evaporation of Male Labor Force Participation

    The Evaporation of Male Labor Force Participation

    Here at The Point Blog, we have been writing a series. Last month, I gave an overview of What’s Affecting the Labor Force Participation Rate? Lorrie followed that up with When Working Costs too Much concerning the benefits cliff and Taylor took a closer look at Baby Boomers Retiring-How do we fill their shoes? This week, I am going to take a deeper dive into some of the reasons that males (age 25-54) are evaporating from Labor Force Participation and some possible solutions for our future workforce.

    The Labor Force Participation Rate is defined as those who are actively looking for or seeking work. According to Male Labor Force Participation: Patterns and Trends there are multiple reasons that males of prime age aren’t seeking employment. Among those reasons are a shift in U.S. industry structure, a decline in male educational attainment, delayed family formation, the rise of substance abuse, and heavy use of video games.

    How can we address the deficit and encourage male workers to get back into the workforce? Read what the Demographic Drought research has to say about solutions to our workforce future.

    1. Recruit beyond traditional demographics-HR directors will need to look into recruiting people that normally would have been overlooked as candidates to fill vacant positions.
    2. Reskilling, upskilling, and alignment-Companies can’t assume they’ll be able to find the right talent. Instead, they must build that talent base for themselves. By working with higher ed to build programs that meet the needs of the job market, offering upskilling or reskilling opportunities to current employees, and providing on-the-job training for new recruits, businesses can close or at least narrow their talent gaps.
    3. Retain students and employees-Colleges and universities must focus on retention, not just enrollment. Similarly, businesses must focus on retaining current employees, not just hiring. 

    In conclusion, we need to value people more. At Horizon Point, we offer a two-day intensive workshop uniquely designed to help business and community leaders examine workplaces of the past and present and explore high-impact solutions for creating workplaces and a workforce for the future. Learn more about our Illuminate content, here.