The right pay scale can be the difference between attracting or losing top talent.
In today’s competitive labor market, setting the right pay scale isn’t just a budgeting exercise — it can create a strategic advantage. Companies entering the Detroit region must align wages with market demands, talent expectations, and long-term business goals to be successful in recruiting the best and brightest. In the Detroit Region, where a dynamic, highly skilled workforce is driving innovation across industries, getting pay right is key for employers who want to stand out to top talent.
The Detroit Regional Partnership (DRP) recently released a new Expert Insights piece on pay scale to help employers understand why a competitive pay scale matters, offer actionable Detroit market insights, and explain how the DRP can guide them in making informed compensation decisions.
Lead, Lag, or Match—Understand how your Company Competes
In Detroit, the employee turnover rate is already below the national average – giving employers in the region a head start on retention. By reviewing compensation benchmarks and staying competitive, companies can reduce turnover even further and keep top talent from leaving for higher-paying opportunities.
DRP can analyze wage benchmarking data and provide wage information by occupation at all levels. We will help a company understand what it means to lead, lag or match the market in a particular occupation and how that may impact their recruitment strategy.
Identify Cost-saving Opportunities
Additionally, DRP can help a company understand how they can experience cost savings on wages. In 2023, when adjusted for the cost of living, wages in the region went 5.6% further than the national average, which could be more or less depending on the specific occupation. Companies have an opportunity to reinvest these savings into benefits packages to create even more attractive compensation packages for talent.
The bottom line: Investing in a competitive pay scale isn’t just about compensation — it’s about positioning your business as a destination for top talent. The return on this investment is real– reduced turnover, savings on recruitment and training costs, and the ability to attract quality talent. In a region like ours, where the workforce is both deep and driven, aligning wages with market realities is a strategic move that sets employers apart.
DRP created the Expert Insights piece to provide employers with valuable market insights and offer strategic, data-driven support in navigating pay scale decisions. Through the Expert Insights Campaign, DRP is committed to helping companies create workplaces that the best talent is drawn to, Because businesses succeed when they attract the right talent – and keep them.
