Labor Market Information Strategies: Wage and Benefit Negotiation

Labor Market Information (LMI) is an excellent source of national and state job market data that resettlement programs utilize to make informed decisions on employers, particular industries, and wages. LMI might seem complicated and overwhelming to jump into; however, the benefits to you and your clients are well worth the effort.  Here is an example from Atlanta.

Lutheran Services of Georgia

Lutheran Services of Georgia Matching Grant program has been using LMI to empower their job developers with knowledge and tools for self-sufficiency success. Job Developer Meron Daniel shows us how. Meron noticed that while most families in LMI’s Matching Grant Program are self-sufficient and are financially comfortable enough to pay their bills, many are  unable to save enough money to make major purchases such as a house or car, and may not have a financial cushion in case of an emergency. Thus, Meron explored ways to increase client wages.

Meron started by gathering information on pay and benefits from employers that were already hiring refugees. Then, she used LMI to compare that data to wages for the same industries in the Atlanta area.  Armed with this information, Meron was able to demonstrate to a potential hotel employer offering a starting wage of just $8.50 an hour, that other hotels were paying $9.50 to $10 per hour for the same position. As a result, the hotel came onboard at $11 an hour – clients are happy and the hotel is competitive with its peers and has improved employee retention. A win-win outcome for everyone.

Suggestions

When negotiating on behalf of clients, Meron advises having your pitch and LMI data ready, being transparent with the employer, highlighting all the costs a particular family may have, emphasizing the services your agency provides, and stressing how vital it is for the family to be self-sufficient. In Meron’s experience, Human Resource recruiters have been open to negotiations and may even use the LMI data to make the case for higher wages to their corporate bosses. Meron recommends that if an employer cannot immediately increase pay based on the LMI information, perhaps they will be willing to offer other employee benefits such as free transportation or expanded health care benefits.

Finding LMI for your area

Higher’s Guide to Labor Market Information tells you how to access specific LMI and offers specific examples on how to use the data in  negotiations. LMI databases, like CareerOneStop or O’NET, have tools available to find wage information for industries in particular areas. Additionally, each state has an LMI expert that is available to help create reports or answer questions.

How do you use labor market information when meeting with employers? Share with us at information@higheradvantage.org.

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