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66% of Employers Plan to Offer Higher Salaries

January 23rd, 2017 Comments off
1 in 2 Employers Know About a Candidate Within First 5 Minutes

Competition for talent remains tough, and according to CareerBuilder’s 2017 Job Forecast, many employers are resorting to offering higher pay to attract the skilled workers they need.

Two thirds (66 percent) of employers say they’ll increase the starting salaries for new workers this year – nearly half of them (30 percent of all employers) will bump starting offers by 5 percent or more.

What Does This Mean for You?

Simply put, if you’re hoping to hire skilled workers in the coming 12 months, you may need to reconsider how much you’re offering. Make sure that what you consider a fair salary is up to date. Do some research on your competitors and other employers in your area that may be looking to pull from the same labor pool as you to get a sense of what else is out there for the candidates you’re trying to attract.

If increasing salaries isn’t an option for your firm, don’t forget to highlight your company’s culture and other perks and benefits. Salary plays a big part in a candidate’s decision, but it’s far from the only factor they’ll consider.

Hiring Through 2016 Will Stay Steady, But the Skills Gap Persists

July 7th, 2016 Comments off
businessman in the modern office looking at city

Hiring trends in the back half of 2016 will look similar to the second half of last year, with one notable difference: higher wages.

Based on CareerBuilder’s Midyear Jobs Forecast, more than half of employers plan on raising current employees’ wages, and 39 percent will begin offering higher starting salaries in the next six months.

These rising wages are driven largely by competition for talent. Employers are still looking to hire at the same rate as last year, but the supply of qualified candidates isn’t meeting the demand. Monthly hires continue to lag behind job postings, leading 70 percent of human resources managers to say their companies will need to offer higher compensation in order to attract and retain the talent they need.

Increased wages aren’t the only strategy employers are turning to in order to bring in new talent amidst the heightened competition. The forecast found that 1 in 6 employers plan to hire more recruiters over the next six months.

Technology-based roles are fueling much of the competition for talent. Many of the in-demand roles for which employers say they’re recruiting in the back half of the year involve capitalizing on emerging technology:

  • Cloud technology – 12 percent
  • Mobile technology – 11 percent
  • Social marketing – 11 percent
  • Providing a good user experience – 11 percent
  • Developing apps – 9 percent

 

While we’re going to see a more noteworthy change is in wages, our data show that the overall U.S. job market is likely to experience very similar hiring over the next six months to what we saw this time last year.

In fact, all three of the major hiring statistics tracked by the annual Midyear Forecast are within 2 percentage points of last year’s results:

  • 50 percent of employers plan to hire full-time, compared to 49 percent last year
  • 29 percent of employers plan to hire part-time employees, on par with 28 percent in 2015
  • 32 percent of employers plan to hire temporary or contract workers, down slightly from 34 percent last year

 

The 2016 Midyear Jobs Forecast reflects an encouraging level of confidence among employers, but at the same time demonstrates the persistence of the skills gap. When the demand for a set of job seeker skills continually outpaces the supply, employers should remember that higher wages and larger recruiting teams aren’t the only tools at their disposal. By investing in the reskilling of current workers or training new hires, employers can effectively create the right worker to fill those open positions, rather than wait for the perfect candidate to come along.

6% Growth in Temp Jobs Expected Through 2018

May 9th, 2016 Comments off
76% of Full-Time Employed Workers Are Open to New Job Opportunities

With plenty of resources available to research full-time job growth, it’s easy to forget about a job category that is key to filling in talent gaps and helping a company remain flexible in today’s marketplace – temporary and contract workers.

According to new research from Emsi and CareerBuilder, labor market data shows that employers plan to add 173,478 temp and contract jobs from 2016 to 2018 – an overall increase of about 6 percent. These new jobs will be created various industries and levels of pay giving every job seeker the opportunity to tap into this new job market.

The CareerBuilder study found the fastest growing temporary occupations with median hourly earnings both above and below $15 per hour. These jobs ranged from Software Application Developers growing by 6 percent and paying a median of $46.72 per hour, to Personal Care Aides (also growing by 6 percent) making a median $10.10 per hour.

What does this mean for you?

Your business needs to remain agile in today’s candidate market. As unemployment remains at one of the lowest rates we’ve seen in recent years, talent will be harder and harder to come by for full-time, essential positions. Nearly 3 million people are employed in temporary and contract jobs today, so keep this group of motivated workers in mind as you continue to develop a nimble recruitment strategy.

Is your company adding temp jobs this year? Tweet to us about it @CBforEmployers.

69% of Employers Plan to Increase Salaries in Q2

April 4th, 2016 Comments off

CareerBuilder’s Q2 2016 U.S. Job Forecast revealed that the U.S. job market can plan for another successful quarter of growth. A survey of over 2,000 hiring managers and HR professionals found that 69 percent of employers plan to increase compensation during the next three months; 25 percent expect that increase to be at least 5 percent, and 44 percent say this salary increase will be 4 percent or less.

However, not every employer is planning a raise for employees – 2 percent expect a decrease and 29 percent say they will either stay the same or don’t know yet.

CareerBuilder also found that over a third of surveyed employers plan to hire more permanent or temporary staff during Q2 2016 (34 percent and 37 percent, respectively).

Matt Ferguson, CEO of CareerBuilder and co-author of “The Talent Equation,” says, “The vast majority of companies are either maintaining their headcount or adding new employees at various skill levels. This is promising news for college students approaching graduation and seasoned workers who want to re-enter the workforce or change jobs.”

What does this mean for you?

As more jobs are added in the marketplace, and a majority of employers plan to increase wages, competition for quality talent will continue to grow as well. Twenty-five percent of surveyed employees say they plan to change jobs this year, so keeping the talent you have should also be a main goal.

Labor market data can help you keep track of average salary ranges and workforce growth for jobs and geographic markets for which you hire.

Contact your CareerBuilder sales representative to discuss data tools that can help your business prepare for growth, like Emsi Analytics and Talentstream Supply & Demand. Don’t forget to ask about our suite of College Recruiting solutions to help make an impact on campus.

1 in 4 Workers Plan to Change Jobs This Year, Latest Job Forecast Finds

March 31st, 2016 Comments off
career concept, business background, man looking at office buildings

CareerBuilder released its most recent job forecast today, which found that 25 percent of workers plan to change jobs this year. Good timing, too: 34 percent of employers are planning to hire full-time, permanent employees over the next three months. Even more — 37 percent — plan to hire temporary or contract workers.

The outlook isn’t just good news for those who want to change jobs, but also for college students on the cusp of graduation as well as those who want to re-enter the workforce. According to Matt Ferguson, CEO of CareerBuilder and co-author of “The Talent Equation.”

Overall, U.S. job growth has been consistent despite volatility in the stock market and weaker performances in global economies. The vast majority of companies are either maintaining their headcount or adding new employees at various skill levels.

CareerBuilder surveyed more than 2,000 hiring managers and human resource professionals and more than 3,000 full-time employees nationwide for its latest forecast, which also looked at past hiring trends. According to the forecast, hiring in the first three months of 2016 outperformed the same period in 2015, with 37 percent of employers hiring full-time, permanent employees – up from 35 percent last year. 

Permanent Hiring in Q2 Expected to Outperform Last Year

Looking ahead, 34 percent of employers plan to add full-time, permanent staff in the second quarter, up from 32 percent last year. Seven percent expect to decrease staff, down slightly from 8 percent last year. Fifty-five percent anticipate no change while 5 percent are undecided.

The industries expected to match or exceed the national average in permanent hiring include health care, financial services, leisure and hospitality, and information technology.

Temporary Hiring Still Going Strong

Temporary employment is expected to remain strong, with 37 percent of employers planning to hire temporary or contract workers this coming quarter, on par with 2015. And in many cases, a “temporary” status may in fact be temporary: 33 percent of employers plan to bring temporary or contract workers on full time.

Hiring By Company Size

It isn’t just large organizations that are adding staff at a faster rate than last year, either. Hiring plans for small- and medium-sized businesses are also up, while plans to reduce headcount are not:

  • Small businesses (50 or fewer employees) – 24 percent plan to increase the number of full-time, permanent staff in Q2, up from 23 percent last year; those reducing headcount remained at 4 percent
  • Medium businesses (250 or fewer employees) – 29 percent plan to increase the number of full-time, permanent staff in Q2, up from 27 percent last year; those reducing headcount remained at 6 percent
  • Large businesses (more than 500 employees) – 41 percent plan to increase the number of full-time, permanent staff in Q2, up from 38 percent last year; those reducing headcount decreased from 9 percent last year to 8 percent.

 

Salaries Also On the Upswing

Headcount isn’t the only thing increasing this quarter. Perhaps in an effort to attract increasingly in-demand talent, employers are bumping staff salaries this quarter: 25 percent of employers expect to boost salaries by at least 5 percent, and 44 percent anticipate an increase of up to 4 percent. Only 2 percent expect a decrease, while 4 percent are undecided.

Want to stay ahead of the latest hiring trends? Download CareerBuilder’s free Recruitment Strategy Guide.

31% of Employed Veterans Are Underemployed Or in Low-Paying Jobs

November 16th, 2015 Comments off
31% of Employed Veterans Are Underemployed Or in a Low-Paying Job

Even as veteran hiring in the U.S. continues to rise, veteran workers continue to feel underemployed or they are stuck in low-paying jobs.

Nearly half of U.S. employers (47 percent) have hired a veteran in the last year, compared to 44 percent in 2014, and 31 percent have hired a veteran who recently returned from duty. However, nearly 1 in 3 employed veterans (31 percent) say they are underemployed or in a low-paying job — a number that’s up from 23 percent last year, according to CareerBuilder Veterans Day Job Forecast.

What does this mean for you?

According to Rosemary Haefner, chief human resource officer at CareerBuilder:

Employers may still not understand the skills veterans had in the military, which may land them in positions that don’t use all their skills and not get them the higher salary levels that they deserve.

Case in point: We recently interviewed Ben Keen, a real-life veteran and successful IT professional who was named American Staffing Association’s 2016 National Staffing Employee of the Year. Keen recalled a staffing professional calling to ask if Keen would be interested in a job as a call center representative for $12 an hour.

“I was thinking if [she] actually read my resume, [she’d] know I’m not a call center representative,” Keen said. “I wrote back to her: Ma’am with all due respect, I highly recommend you go back and re-read my resume and email me again to [let me know] if you still think I’m qualified.”

This is an opportunity for employers NOT to pigeonhole veterans, but instead to take a good look at their skill sets. Every veteran has a story, so take the time and effort to find out why they were successful in the military and then connect that back to their skill sets.

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Highlights from CareerBuilder’s Q4 Forecast

October 8th, 2015 Comments off
JobsForecastwithFergusonByline

CareerBuilder’s latest quarterly forecast covers a lot of ground, but the findings all point to one larger theme – employer confidence. That’s really been the story of 2015, as each of CareerBuilder’s quarterly forecasts this year have shown year-over-year increases in hiring expectations.

And Q4 is shaping up to continue that trend, with 34 percent of employers planning to add full time workers and 33 percent adding seasonal staff over the next three months.

“Our study is reflecting a durability in the U.S. economy and labor market,” said Matt Ferguson, CEO of CareerBuilder and co-author of The Talent Equation. “Employer confidence is widespread and the strongest we’ve seen since 2006. Hiring will continue on an upward trajectory for both permanent and seasonal positions, with pay expected to improve over last year as companies keep pace with minimum wage hikes and compete more aggressively for elusive talent.”

 

Key Takeaways

  1. Full time hiring continues to rise

Employer confidence is clearly reflected in the projections for this quarter, with 34 percent of employers planning to add full-time, permanent employees in Q4, up from 29 percent in 2014 and 25 percent in 2013.

  1. Seasonal hiring on the rise, too

The number of employers adding seasonal workers this quarter saw a year-over-year jump, too. A third (33 percent) of employers plan to hire seasonal workers in Q4, up from 26 percent last year. Even more encouraging is the dramatic increase in employers planning on transitioning seasonal staff into full-time positions – 57 percent, compared to 42 percent this time last year, indicating that employers are expecting to see continued growth moving into 2016.

While half of seasonal employers say they’re taking on more workers to help with the holiday rush, 31 percent say it’s to gear up for 2016 – further evidence that we will see this confidence carry over into the new year.

  1. Higher wages for seasonal workers

The increased number of companies looking to hire seasonal employees along with recent federal and state minimum wage increases are driving forces behind employers offering bigger take-homes for seasonal workers.

Thirty-seven percent of employers say they are increasing wages for their seasonal staff this quarter – ten percentage points higher than last year. Nearly three quarters of seasonal employers will pay $10 or more per hour, and 19 percent will offer $16 or more.

  1. Big and small – they’re all hiring

Much of this year’s increase in seasonal hiring can be attributed to demand from larger companies. Forty-two percent of companies with more than 500 employees plan to take on seasonal workers this quarter, up 11 percentage points from this time last year.

Small businesses, on the other hand, are increasingly looking to make longer-term investments in their hires. The number of companies with 50 employees or fewer looking to add full-time headcount in Q4 jumped from 16 percent in 2014 to 23 percent this year.

  1. The South is winning, but the Midwest is catching up

The South houses the largest percentage of employers planning to add full-time, permanent employees in Q4 (36 percent), while the Midwest saw the largest year-over-year gain (34 percent, up from 24 percent last year).

Seasonal hiring saw a year-over-year increase in all four regions, though most notably in the West, where 42 percent of employers say they plan to hire seasonal workers this quarter, up from 29 percent last year.

 

 

 

6 Highlights from CareerBuilder’s 2015 Midyear U.S. Job Forecast

July 9th, 2015 Comments off
6 highlights from the 2015 Midyear U.S. Job Forecast

We’re halfway through 2015 — can you believe it? A lot has changed… some good (Bennifer is over, and you’re still rooting for J Lo and Ben to get back together), some bad (Bennifer is over — and if they can’t make it, who can?!). In the world of employment, many hiring trends are predicted for the last half of the year, according to CareerBuilder’s Midyear U.S. Job Forecast — and some of those things are more favorable than others, depending on how you look at it. Both employers and job seekers are feeling confident in their prospects. In fact, nearly half of employers plan to hire full-time, permanent staff over the next six months, and one-third plan to hire temporary or contract workers. Both of these projections are improvements over 2014’s hiring outlook. Good, right?

Well, good for the employers hiring, and for job seekers — but the employers they’re leaving may not agree: With hiring on the upswing, many workers are looking to take advantage of a labor market that has produced an average of 245,000 jobs per month in the last year and leave for greener — or at least what appear to be greener — pastures. Three in ten workers (29 percent) plan to change jobs in the next 12 months, up from 25 percent last year.

But employees departing their jobs really is a good thing for all: It means the labor market thrives and becomes more competitive. And as talent advisor Steve Browne has stressed, employees leave their jobs — it shouldn’t be treated as a negative, but as a natural occurrence. It’s the circle of life, y’all.

There’s a favorable dynamic happening in the labor market today,” said Matt Ferguson, CEO of CareerBuilder and co-author of The Talent Equation. “Companies are feeling more financially secure and increasing their headcount. This is creating a more competitive hiring environment, which is having a positive impact on wages and the labor force participation rate. We expect to see continued strength in these trends with nearly half of employers looking to add staff and raise starting salaries in the months ahead.”

 

 some 2015 Midyear U.S. Job Forecast Highlights:

  • Starting salaries are on the rise: Nearly half of employers (47 percent) expect to increase starting salaries on job offers over the next 12 months. Around 1 in 6 employers will raise starting salaries by 5 percent or more.
  • Hot areas for hiring are headed up by IT: Information technology, health care, hospitality, financial services, manufacturing and retail are all expected to outperform the national average for full-time, permanent hiring in the last half of the year.
  • In-demand areas for recruiting include many newer fields: Those tied to mobile, search or cloud technology; cyber security; social media; wellness; financial regulation; managing and interpreting big data; content strategy for the Web; alternative energy sources and robotics.
  • Northwest is winning when it comes to regional hiring: Comparing regions, the Northeast displayed the biggest increase in the percentage of employers planning to add full-time, permanent headcount in the second half of the year. (52 percent planning to hire permanent, full-time employees — up from 48 percent last year). Hiring in the other regions is expected to experience a slight shift or stay in line with last year.
  • Hiring in Q3 2015 is looking up: 34 percent of employers plan to hire full-time, permanent employees in the third quarter, up from 31 percent last year. Seven percent expect to downsize staffs – an improvement from 9 percent last year – while 54 percent anticipate no change and 5 percent are undecided.
  • Small businesses are feeling more confident: Hiring is expected to increase three percentage points over last year for companies with 50 or fewer employees

How did we do in Q2 2015?

In the second quarter of this year, 39 percent of employers added full-time, permanent headcount, up from 36 percent last year. Nine percent decreased headcount – an improvement from 10 percent last year – while 51 percent made no change and 1 percent were unsure.

 

Want the full story? view the full forecast here.

The Pulse of Staffing and Recruiting in Q3 2015

July 8th, 2015 Comments off
Two Businesswomen Meeting Around Table In Modern Office

Every quarter, CareerBuilder surveys over 400 staffing industry professionals to gauge national industry trends and business insight—then shares the results with you. Check out where you stand amongst the competition, how other staffing organizations are growing and the Q2 trends that will impact your back half of 2015 for all things staffing and recruiting.

Growth and speed of business
A robust economy means more and more staffing firms are putting people to work—internally and externally. When asked how they anticipate their average number of open job orders will change from last quarter to the current quarter, 70 percent of staffing professionals anticipate an increase (down slightly from 72 percent in Q1 2015). Twenty-five percent expect their job orders to stay the same, and 5 percent anticipate a decrease.

Of those who anticipate an increase, 51 percent expect the number of job orders to increase by 6-15 percent. According to one pulse survey respondent, “It’s a candidate-driven market, given their ability to vet their own opportunities aside from ones a staffing firm represents. The importance of timely feedback and realistic expectations of hiring associates is imperative, now more than ever.”

That applies to staffing firms’ internal hiring strategies, too, especially when 66 percent of staffing industry professionals anticipate increasing their number of recruiters in Q3 2015, up from 63 percent in Q1. “If there is a candidate you are interested in, make time to interview them as quickly as possible. Most candidates do have more than one offer out there and are also actively interviewing,” another survey respondent says.

SRG Q3 pulse survey

Competitive recruiting and signing
It often feels like recruiters are from Mars and candidates are from Venus—expectations can vary wildly and getting both parties to agree to the terms of a new job is an uphill battle. How you source your candidates, combined with the experience they have, can impact the quality and quantity of talent available to you. A survey respondent says, “I think people are realizing that social media is going to play a huge part in hiring for the future. Great talent pools are getting harder to find, and the most common thing I hear from clients is that the talent pool has never been smaller. That’s where CareerBuilder and I come to the rescue!”

There are plenty of solutions to growing your own internal talent pool, as well as connecting better with job seekers. One major fix you can apply to your own hiring strategy today is to make expectations clear—from the job posting to the interview to salary negotiations. For instance, 66 percent of respondents say job candidates’ salary expectations exceed employers’ offers, which translates to a lot of candidates carrying very different expectations throughout the interview process. These misaligned expectations will not only affect how your offer is received, but they will also result in both you and candidates wasting each other’s time when the salary difference is too large.

The most common reasons for a candidate declining an offer are:

  • Received another offer (39 percent)
  • Compensation/benefits not in line with expectations (29 percent)
  • Received a counter offer from their current company (10 percent)
  • Undesirable location (9 percent)

As the economy—and with it the labor market—continues to grow, recruiters will be expected to grow and manage the influx of talent. The first step to tackling today’s challenges is to understand what is (and isn’t) working for your staffing industry peers.

Competitive Pay and Training on Agenda for the Class of 2015

April 28th, 2015 Comments off
Graduation

by Rosemary Haefner, chief human resources officer of CareerBuilder

The class of 2015 has one more reason to celebrate: In the best outlook since 2007, 65 percent of employers are planning to hire recent college graduates this year, according to a new survey from CareerBuilder. Even better, one third of employers will offer higher pay than last year, and 1 in 4 will pay $50,000 or more. This year’s graduates are certainly entering a competitive workforce, with employers and candidates on more equal footing after the recent economic shake-up and subsequent recovery.

That’s not to say these grads won’t face challenges in the job market, though, and hiring new graduates means embracing their capabilities—and building on their fresh slate. CareerBuilder’s college hiring forecast reveals how.

In-demand majors and complimentary industries

A college degree has become more and more common in the twenty-first century, changing the workforce’s demands and priorities. Hiring managers surveyed are primarily looking to fill positions in information technology (30 percent) and customer service jobs (28 percent), as well as finance/accounting (22 percent), sales (21 percent) and business development (19 percent).

Filling those vacancies means looking for the top of the class. New grads enter the workforce with a beginner’s knowledge of their industry, and employers can capitalize on that energy and ambition. Of the most sought-after grads, employers prioritize interviewing and hiring:

  • Business and technical majors (38 percent)
  • Computer and Information Sciences (27 percent)
  • Engineering (18 percent)
  • Math and Statistics (14 percent)
  • Health Professions and Related Clinical Sciences (14 percent)
  • Communications Technologies (12 percent)
  • Engineering Technologies (12 percent)
  • Communication and Journalism (10 percent)
  • Liberal Arts and Sciences, General Studies and Humanities (9 percent)
  • Science Technologies (8 percent)
  • Education (7 percent)

Payday prospects

Along with a growing job market, lucrative entry-level opportunities are becoming more prevalent. One third (33 percent) of employers who plan to hire recent college graduates will offer higher starting salaries than they did last year. Fifty-seven percent expect no change in salary offers.

Offers before graduation are growing, too, as nearly half of employers (48 percent) say they will make offers to students before they graduate. Expected starting salaries for recent graduates break down as follows:

  • Under $30,000: 26 percent
  • $30,000 to less than $40,000: 28 percent
  • $40,000 to less than $50,000: 20 percent
  • $50,000 and higher: 26 percent

 

These numbers, however, are not set in stone: The majority of employers (65 percent) say they are willing to negotiate salary offers.

Preparing for challenges

With such bright prospects, it’s tempting to say recent grads will easily transition to the workforce. However, one in five employers feel colleges do not adequately prepare students with crucial workplace competencies, including short-comings like:

  • Too much emphasis on book learning instead of real world learning (46 percent)
  • I need workers with a blend of technical skills and soft skills gained from liberal arts (38 percent)
  • Entry-level roles within my organization are more complex today (22 percent)
  • Not enough focus on internships (15 percent)
  • Technology is changing too quickly for academics to keep up (14 percent)
  • Not enough students are graduating with the degrees my company needs (10 percent)

 

These are challenges that employers and educators can work together to fix, bridging the gap between the training educators can offer and the soft skills employers are prioritizing. For instance, when asked which skills they think recent college graduates lack for the workplace, most of these employers cited interpersonal or problem-solving skills:

  • Interpersonal or people skills (52 percent)
  • Problem-solving skills (46 percent)
  • Oral communication (41 percent)
  • Leadership (40 percent)
  • Written communication (38 percent)
  • Teamwork (37 percent)
  • Creative thinking (36 percent)
  • Project management (26 percent)
  • Research and analysis (16 percent)
  • Math (15 percent)
  • Computer and technical (13 percent)

 

Being aware of these common concerns means looking for grads who showcase excellence in these areas, or customizing job descriptions and advertising around the type of entry-level employee you’re looking to bring onboard. With 2015’s impressive forecast for college hiring, recent graduates are a strong asset that can bring new resources and energy to your team.

QUIZ: Is Your Firm Keeping Up With Staffing Tech and Trends?

April 13th, 2015 Comments off
workplace trends

Nobody has to explain the importance of the Internet to staffing firms, or how technology has influenced the way we organize and make our workforce more efficient—the effects of job boards, big data, hiring platforms and other Internet and software services has transformed the staffing industry.

But there are also more subdued trends in staffing and recruiting, which can change from quarter to quarter and may not be as easily noticeable to industry newbies or those who may have fallen in a hiring rut. That’s why CareerBuilder’s quarterly guide on the latest in staffing and recruiting can be such a helpful asset on the job—but only if you actually read it. If you haven’t checked it out yet, here’s your chance to test your knowledge against CareerBuilder’s Q2 Staffing and Recruitment Guidebook. Is your firm keeping up with staffing and tech trends?

Q2 Hiring Forecast Shows Economy Springing Alive

April 2nd, 2015 Comments off
Excited Young Female Doctor

The second quarter of 2015 is here, as well as the six things you should know about hiring and pay for April – June, according to CareerBuilder’s quarterly jobs forecast.

1. More employers are hiring

The slowly-but-surely recession-recovery pace we’ve endured is continuing to yield good news. In the second quarter, 32 percent of employers plan to hire full-time, permanent employees, up from 26 percent last year.

2. Employers are still resizing their workforce

While an improved job market is good news for both hiring managers and job candidates, the second quarter is leaving some employers reassessing their needs and the people required to complete those roles: 8 percent expect to downsize staff, on par with last year; 55 percent anticipate no change while 5 percent are undecided.

3. Small-business hiring is up

When smaller businesses are able afford hiring more employees, it’s a sure sign that the economy has stabilized and even improved. This quarter’s forecast echoes that sentiment, as 23 percent of companies with 50 or fewer employees expect to add full-time, permanent staff over the next three months, up from 18 percent last year.

4. Some industries are outperforming the national rate of hiring

2015 is putting a focus on upgrading our internal structure with industries that are crucial to everyday life, like transportation and health care. Industries expected to match or exceed the national average for adding full-time, permanent headcount in the second quarter are:

  • Information technology – 49 percent
  • Transportation – 44 percent
  • Financial services – 40 percent
  • Health care (50 or more employees) – 32 percent


5. Pay is getting more competitive

The study also shows wages may get an upgrade as companies grow more competitive for skilled talent in the face of shrinking labor pools. Twenty-four percent of employers expect to increase salaries at least 5 percent in the second quarter compared to the same period last year; 44 percent anticipate there will be an increase of 4 percent or less while 1 percent expect a decrease and 4 percent are undecided.

6. Employers willing to wait for right job candidate

As the job market continues to grow more competitive and salary offers grow with the demand of skilled workers, employers are willing to wait for the right job candidate to get the most for their money. Forty-three percent of employers have job vacancies that stay open for 12 weeks or longer.

 

“The brisk hiring anticipated for the second quarter comes against the backdrop of stronger sales, new product development and market expansion among companies of all sizes,” says Matt Ferguson, CEO of CareerBuilder and co-author of The Talent Equation. “Small businesses have been playing a larger part in the solid stretch of job growth the U.S. has experienced over several months. When you pair that with the fact that hiring has increased in a variety of industries and regional areas, it bodes well for workers seeking new and better-paying employment prospects.”

45% of Employers Expect to Raise the Minimum Wage in 2015

January 5th, 2015 Comments off
Talent Factor

As CareerBuilder CEO Matt Ferguson previously mentioned, the U.S. job market is turning a corner as caution gives way to confidence. More than one-third of employers expect to add full-time, permanent staff in 2015, the best hiring outlook from CareerBuilder’s U.S. Job Forecast since 2006.

And with that news comes news that nearly half (45 percent) of employers anticipate their organization will raise the minimum wage this year. Of these employers, more than half (53 percent) will raise it by $2 or more per hour, while one-third (32 percent) will raise it by $3 or more. Forty-seven percent will limit the increase to $1 or less.

To increase or not to increase

The issue of salary increases is one of the most hotly contested workplace issues as of late — and that’s not expected to change anytime soon. Of the 45 percent of employers who anticipate raising the minimum wage within their organizations this year, the largest percentage of them (21 percent) say they plan to pay minimum wage workers at their organization between $10 and $10.99 per hour. The next largest group (18 percent of employers) say they plan to pay $15 or more per hour.

Employer Wage Plans 2015

What this means for you

While salary isn’t always the No. 1 consideration for candidates (and your current employees), it’s a big one. As companies are still fighting the skills gap and as in-demand candidates for certain occupations are getting harder and harder to come by, organizations may want to consider raising the bar when it comes to compensation in order to stay competitive and retain the best people in 2015.

Get the full story: READ THE FULL 2015 U.S. JOB FORECAST NOW

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Hiring Trends Point to Tough Competition for Candidates in 2015

January 1st, 2015 Comments off
CareerBuilder Hiring Forecast for 2015

In the years following the Great Recession, employers were wary to make broad and lasting hiring decisions, instead taking a slow and cautious approach to filling staffing needs. The economy was recovering, but for every piece of positive news there seemed to be a setback either here or abroad that hindered the job market from bouncing back to its pre-recession employment rates.

According to CareerBuilder’s 2015 hiring forecast, the U.S. job market is turning a corner as caution gives way to confidence. More than one-third of employers expect to add full-time, permanent staff in 2015, the best outlook from the annual survey since 2006.

Employers, now facing a more competitive market that favors job seekers in various fields, will need to step up their recruitment efforts if they want to secure the most desirable candidates for their open positions.

Full-time, temporary and part-time hiring all to increase

Thirty-six percent of employers plan to increase full-time, permanent staff in the coming year, a 12-point jump from 2014. Industries that have already been experiencing accelerated growth are expected to outperform the national average when it comes to the hiring of full-time, permanent employees. These include:

  • Information technology (54 percent)
  • Financial services (42 percent)
  • Manufacturing (41 percent)
  • Health care (38 percent)

 

Temporary employment is also projected to pick up in 2015, with 46 percent of employers planning to hire temporary or contract workers, up from 42 percent last year. As in years past, this is in part due to employers striving to maintain some flexibility in their workforce to more easily adapt to market fluctuations. However, in 2015 more employers may also find themselves struggling to fill in-demand roles, causing them to make temporary hires until they find more suitable replacements.

Twenty-three percent of employers expect to recruit part-time workers over the next 12 months, up six percentage points over 2014. While a variety of factors will influence this trend, the Affordable Care Act is one of the reasons why employers stated they’ll likely hire more part-time workers in 2015. Fourteen percent of employers cite the law as their motive for part-time hiring.

STEM jobs continue to be in the spotlight

Hiring for STEM (science, technology, engineering and math) occupations has exploded over recent years, and this trend shows no sign of slowing. Thirty-one percent of hiring managers plan to create jobs in these areas throughout 2015, up from 26 percent in 2014.

Positions tied to revenue growth, innovation and customer loyalty will also see a surge in full-time, permanent hiring in the New Year, with sales (36 percent), customer service (33 percent), information technology (26 percent), production (26 percent) and administrative (22 percent) roles leading the pack.

Workers are winning the wage increase war

There are two main factors that are predicted to impact pay for employees of various levels next year: the battle over minimum wage and heightened competition for high-skill candidates.

Raising the minimum wage was one of the most hotly debated issues of 2014. While it remains to be seen whether the federal minimum wage will increase, many employers are taking steps on their own to provide bigger paychecks next year. Forty-five percent of employers expect to raise the minimum wage within their organizations in 2015. Of those employers, half will increase it by $2 or more per hour, while one-third will raise it by $3 or more.

When it comes to general compensation trends, wage growth has largely been sluggish post-recession. Yet as hiring demands accelerate, employers will need to offer more competitive salaries and benefits if they want to hire the most sought-after candidates and keep their best workers.

Eighty-two percent of employers plan to increase compensation for existing employees in 2015 – up from 73 percent last year, while 64 percent will offer higher starting salaries for new employees – up from 49 percent in 2014. By putting more in their workers’ pockets now, employers can help their organizations avoid the costs associated with making bad hires or a position staying vacant for an extended period of time.

Employers tightening education requirements

As roles within companies become increasingly complex and data-driven, employers anticipate the need to adjust education requirements for certain positions in order to attract workers with more advanced degrees.

  • Twenty-eight percent of companies say they’re now hiring more employees with master’s degrees for positions that historically had been held by workers with four-year degrees.
  • Thirty-seven percent are now hiring workers with college degrees for those roles that had been primarily held by employees with high school diplomas.
  • Sixty-five percent of these employers attribute this to the skills required for these positions evolving.

Looking back, looking ahead

Over the past several years, the job market has experienced its share of roadblocks on the road to recovery. In 2014, the unemployment rate finally went back to pre-recession numbers, and we saw encouraging hiring activity across categories and industries, including small businesses and hard-hit sectors like manufacturing and construction. Looking forward, job seekers can expect to find a healthier job market ripe with opportunities, setting the stage for a more competitive environment for recruiters.

read the full 2015 U.S. job forecast NOW

 

ABOUT THE AUTHOR: Matt Ferguson is the CEO of CareerBuilder and co-author of “The Talent Equation: Big Data Lessons for Navigating the Skills Gap and Building a Competitive Workforce.”