Industry and Geographic Issues

Employment practices vary widely based on industry and location. These differences have a significant impact on the hiring process and on the cost of having employees. Be prepared to offer a competitive employment package to hire and retain qualified employees. Consider, for example, the differences between a restaurant business and a software development company.

Geography can also play a large part in determining what it will take to hire and keep good employees. First, the cost of basic essentials (food, housing, transportation) is much higher in some locations, particularly large urban areas, than in more rural settings. Second, employers within a single employment market will be competing for employees most directly with other local firms. This is tempered to some extent by the increasing mobility of the American workforce. Nevertheless, a business in, for example, Silicon Valley, will have to provide compensation, benefits and work conditions comparable to its local competitors.

What this means is that you must know what your competitors are offering to obtain employees. If your business doesn't or can't offer similar compensation and benefits, you may have a difficult time attracting the best available employees. Job ads are generally vague about compensation and benefits, but you can discuss the issue with employees, who probably have a better knowledge of the market for their specific job than you do. And, it's not unreasonable to respond to a competitor's ad to find out what they're offering.