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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.

Staying Strong: Findings from CareerBuilder’s Q4 Forecast

October 6th, 2016 Comments off
Staying Strong: Findings from CareerBuilder’s Q4 Forecast

Each quarter, CareerBuilder surveys employers from across the country to determine hiring trends for the next three months. As we approach the holiday season and a new year, the latest forecast also includes a heavy focus on seasonal, or temporary, hiring.

The good news is: All signs point to continued strength in the hiring market. The study found that 34 percent of employers plan to make permanent, full-time hires over the next quarter; and 33 percent plan to add more seasonal/temporary workers in the same time frame.

“Overall, permanent and seasonal hiring in the fourth quarter will be on par with last year, with one-third of employers planning to add staff in either category,” said Matt Ferguson, CEO of CareerBuilder and co-author of The Talent Equation. “However, 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.”

Let’s take a look at some other highlights.

Wages on the incline

Not only are nearly half of employers (47 percent) planning on increasing wages, but the wages themselves are also climbing. Of those hiring seasonal workers in Q4, 75 percent will pay $10 per hour or more (up from 72 percent last year), and 28 percent expect to pay $16 or more per hour, up a whopping 9 percentage points from last year.

Retail is slowing, but still growing

Possibly the largest employer of seasonal workers in Q4 is the retail industry. However, as the talent market continues to be competitive and the push for higher wages spreads, retail is also experiencing a greater change than other industries.

Forty-nine percent of retailers plan to grow their seasonal workforce, a number that is down from 53 percent in Q4 last year. However, workers that do find these jobs can also expect higher wages than last year. More than half of employers (53 percent) will offer new seasonal hires wages of $10 per hour or more – up from only 43 percent last year.

West is best

If you’re looking for warmer weather and a seasonal or full-time job in Q4, the Western region of the U.S. is on the right track. About 2 in 5 employers in the West report that they plan on hiring both permanent and temporary workers (39 percent and 40 percent, respectively) over the next three months.

On the other hand, even the region with the lowest numbers – the Midwest – project growth in both categories. Nearly 3 in 10 organizations plan to hire workers for jobs that are either full-time (29 percent) or seasonal (27 percent).

Click here to download the full report.

Latest Job Forecast Points to Strong 2016

January 7th, 2016 Comments off
AnnualJobForecast

Strong Job Growth Expected to Continue in the New Year

Last year’s hiring forecast showed the strongest outlook since 2006. This year, the trend of strong growth and confidence will only continue. Employer confidence is widespread, with more than one-third of employers planning to add full-time, permanent staff this year, according to CareerBuilder’s 2016 job forecast.

It is becoming more apparent to employers that, as competition for in-demand workers tightens in various fields, they will need to adjust their recruitment efforts to keep up with labor market trends and the demands of a more in-control workforce.

In addition to showing positive signs in terms of growth for both permanent and temporary hiring, this year’s forecast brought to light five key employment trends that will emerge in 2016, several of which are tied to higher competition for talent, innovation in sourcing and developing high-skill workers, and a push for more diversity in leadership.

Full-time and temporary hiring all to increase

Thirty-six percent of employers plan to increase full-time, permanent staff in the coming year, on par with last year’s strong numbers. Looking at specific industries, financial services and information technology have already been experiencing accelerated growth, and are expected to outperform the national average – at 46 percent and 44 percent, respectively. Manufacturing (37 percent) and health care (36 percent) are expected to mirror the national average.

Temporary and contract employment is also projected to pick up in 2016, with 47 percent of employers planning to hire temporary or contract workers, up slightly from 46 percent last year and 42 percent in 2014. While temporary and contract employment enables employers to maintain flexibility in their workforce, it also enables them to fill in-demand roles on a short-term basis while they look for more suitable replacements.

Solving the skills gap at home

The skills gap continues to be a pain point for the majority of employers. Sixty-three percent are concerned about the growing disconnect between the skills they need for their organizations and the skills candidates possess. Meanwhile, nearly half (48 percent) say they have extended vacancies within their organizations. In an effort to address these challenges, many are taking matters into their own hands. One in 3 employers (33 percent) say they plan to hire low-skill workers and invest in training them for high-skill jobs at their organizations this year.

Positions tied to revenue growth, innovation and customer loyalty will also see a surge in full-time, permanent hiring in the New Year. Customer service (32 percent), information technology (29 percent), sales (27 percent), production (24 percent) and administrative (20 percent) jobs top the list of areas for which employers plan to recruit the most in 2016.

Salaries to increase for new, existing employees

It’s no secret that money is one of the most influential factors when it comes to attracting and retaining workers. So it should also come as no surprise that, given the higher competition for high-skill candidates, employers are planning to increase their compensation offerings this year. Eighty-three percent of employers plan to increase compensation for existing employees – on par with 82 percent last year – and 66 percent will offer higher starting salaries for new employees, up from 64 percent last year.

While wage growth has been slow since the end of the recession and continues to be gradual, our findings indicates that we may see an uptick soon, particularly as employers adjust their compensation strategies to compete for in-demand, highly skilled talent as well as entry-level positions. Workers are gaining leverage; however, the money employers invest in finding the right talent now will save them money in the long run, helping them avoid costs associated with bad hires, lost productivity and long-term vacancies.

Recruiting the next generation

For several years now, filling positions in STEM-related fields (science, technology, engineering and math) has been an ongoing challenge for employers. In many cases, the skills employers need are not being cultivated in the labor market today, which causes workers and companies alike to miss out on realizing their full potential.

In effort to encourage the next generation to pursue STEM-related fields and other in-demand areas, employers are building relationships with students at an early age. Twenty-five percent plan to hire high school students as interns over the next 12 months.

Recruiting beyond U.S. borders

Employers will continue to look at talent pools outside the U.S. to help fill labor deficits. Nearly 1 in 5 (19 percent) say they will hire workers with H-1B visas in 2016, which will enable them to employ temporarily foreign-born workers for specialized occupations.

There continues to be debate around whether the U.S. should be importing workers to fill high-skill jobs, or investing in educating the labor pool that already exists on our shores. An earlier survey we did showed that employers who support raising the cap on H-1B visas believe that doing so will help decrease the skills shortage in the country and increase progress in STEM-related fields, among other benefits encourage

Prioritizing diversity in leadership roles

Another trend to watch for in 2016 is the diversification of demographics in organizational leadership. Like the population as a whole, the U.S. workplace is becoming more diverse overall. At the same time, there remains a lack of diversity in executive and leadership positions. Diverse organizations are shown to be more innovative, more inclusive, and better positioned to capitalize on an ever-changing consumer marketplace. A diverse leadership team can only strengthen these factors, and our forecast indicates that more employers recognize this.

Fifty-five percent of employers plan to hire or promote more women for management roles, and 53 percent plan to do the same for diverse workers. Forty-seven percent of employers plan to promote workers under the age of 30 into management roles.

2016 and beyond

On average, the U.S. has added 200,000 jobs each month over the last two years, and we expect 2016 to produce similar results, if not better. After several years of frustratingly slow growth, the job market – now back to pre-recession numbers – is showing signs of strong, consistent growth. Employers and job seekers alike should feel optimistic about these findings and what they mean for opportunities moving forward.

Read the full 2016 U.S. job forecast now

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.”