One Way You Can Retain and Recruit Employees

Thursday, December 23, 2021 at 07:58 AM ET

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There's great competition for sirline pilots. If you're an employer, there's a way you might be able to get the inside track. [Credit: Adobe Stock]

Key Takeaways:

The aviation industry faces a severe pilot shortage, but simply increasing direct pay is an inefficient incentive because high taxes significantly reduce the net amount employees receive.
Increasing employer 401(k) contributions is a more effective compensation strategy, offering a much higher long-term return on investment for both employers and employees due to tax-deferred growth.
Offering an attractive 401(k) plan helps employers recruit and retain financially savvy pilots who are more likely to stay, reducing churn, cutting training costs, and improving the company's brand.

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The aviation industry is desperately short on pilots. The airlines suffering from this are poaching aviators from wherever they can get them. This causes pain for corporate operators, regional airlines, and flight schools.

If you run one of those organizations, it’s likely that staffing keeps you up at night. There is a way to improve recruiting and retention, and do better by your people.