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68% of Employers to Increase Wages for Full-Time Workers in Q4

October 17th, 2016 Comments off
increasing salaries

While the economy has bounced back from the Great Recession, wage growth has continued to remain stagnant. Yet, CareerBuilder’s latest hiring forecast shows that paychecks may soon get a much-needed boost.

According to the survey, 68 percent of employers plan to increase salaries for full-time, permanent workers in Q4, with 28 percent anticipating an average pay increase of 5 percent or more.

Employers also plan to offer bigger paychecks to seasonal workers. Forty-seven percent expect to increase pay for seasonal workers during the fourth quarter. Of those hiring seasonal employees, 75 percent will pay $10 or more per hour, up from 72 percent last year, and nearly 3 in 10 (28 percent) expect to pay $16 or more per hour, up from 19 percent last year.

What Does This Mean for You?

Matt Ferguson, CEO of CareerBuilder and co-author of “The Talent Equation,” says that various factors are influencing rising wages. “… campaigns for a higher minimum wage, paired with a tighter labor market for lower-skill and semi-skill jobs, is giving job seekers more of an edge when it comes to compensation. Wage growth, while still a serious concern, will likely see a lift in the coming months.”

As the competition for candidates intensifies, especially for hard-to-fill jobs, you may need to re-evaluate your compensation strategy if you want to entice new hires to join your company and keep employees from leaving for a higher-paying job. Using analytics to compare your compensation rates with your competitors’ salaries can help you make the case for raising wages.

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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.