According to two Wall Street journal articles, Customer Rubber Corp. is on the cutting edge of U.S. manufacturing companies overall. Both articles, U.S. Pay Increases at the Bottom of the Ladder and Manufacturers Search for Workers, point out the challenges of finding committed employees. Raising wages is the most obvious lever companies can pull to overcome the challenge - and that's what Custom Rubber Corp. is doing.
As a blog post from August 8 highlighted that Custom Rubber Corp. has raised its starting wages three times in the last 12 to 14 months. For example, new machine operators now start at $11 per hour and increases to $12 per hour after completing their first 60 days. Those numbers do not include the thirty-five cents per hour shift premium for second and third shift. Additionally, Custom Rubber Corp. has been working at least one Saturday overtime day per month for the last four months.
According to second Wall Street Journal article, weekly wages for workers at full time status in the 25th percentile have increased by 3.1 percent from 2015. Such an increase is the biggest that the industry has seen since 2009, and that “exceeds the growth rate for median earners.”
Custom Rubber Corp.'s increase have been 10 times the average because the benefits significantly outweigh the extra costs. Further, the article notes that a smart financial decision made by companies involves bolstering pay at the bottom half, which increases stability and decreases hiring and training costs.
The Wall Street Journal article from September 2 starts by stating, “Amid growing anxiety about the disappearance of factory jobs, thousands of them are going unfilled across the U.S.” Custom Rubber Corp. currently has openings for more than 12 machine operators, with some openings on all three shifts. The article continues, “The number of open manufacturing jobs has risen since 2009 and this year stands at the highest level in 15 years, according to Labor Department Data.”
Despite competitive pressures on pricing, Custom Rubber remains committed to growth and development. Not surprisingly, that growth depends on an ability to attract and retain employees at all levels of the organization. Custom Rubber Corp. will continue to evaluate wages paid to ensure a competitive edge, as well as the ability to fill open positions.