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Overall Salaries Up 2.9% Over Past 4 Years

April 17th, 2017 Comments off
Talent Factor April 17

While wages and salaries across all industries nationally increased by 2.9 percent between 2011 and 2016, that growth was far from uniform.

According to CareerBuilder’s 2017 Salary Guide, many sectors greatly outpaced the national growth rate. Wages and salaries in the information sector grew by 13.3 percent — more than any other sector — followed by real estate rental and leasing (8.1 percent) and crop and animal production (7 percent).

 

What Does This Mean for You?

The single, most persuasive incentive to job seekers is pay. So if you want to attract the best talent, your best bet is to offer a competitive salary. In order to do this, it’s important not only to benchmark against your competitors, but also against industries seeking workers with similar skills. Salary trends can reveal untapped talent pools – or even looming threats.

To learn more about today’s most dominant salary trends, download CareerBuilder’s 2017 Salary Guide.

3 Ways Salary Transparency Could Benefit Your Small Business

March 15th, 2017 Comments off
salary transparency

For generations, asking the question “How much do you make?” has been a surefire way to bring a conversation to an uncomfortable pause. Whether for fear of judgment or simply because of cultural conditioning, Americans typically shy away from revealing their salaries and peg someone who inquires as rude. Today, however, salary transparency is becoming more common, as many view it as crucial to issues such as fair pay and career decision-making.

More and more businesses are getting in on the trend, as well. But does salary transparency make sense for your small business? Here are reasons to consider salary transparency and what you need to know.

Salary transparency can aid recruiting efforts.

Savvy job seekers want to see what they stand to earn at your small business. Thanks to the growing number of web-based sources of salary data makes finding out increasingly possible. Millennials, who are accustomed to information being at their fingertips, especially seem drawn to companies that are open about compensation. Likewise, accessible salary information oftentimes increases the number of female applicants, perhaps because they feel greater confidence that they’ll get a fair shake.

A few companies have gone so far as to post what individual employees make to their corporate websites. While such “radical transparency” sounds scary, some small businesses have reported extraordinary results in terms of number and quality of applicants. Experts reason that this may be due to elimination of guesswork. Potential candidates can judge whether the figures fit in with their current and long-term expectations. And better matches from the start increase retention odds for your small business.

Employee satisfaction may increase.

Workers commonly overestimate what others at their office earn. This misconception can lead to higher levels of job dissatisfaction. Salary transparency sets the record straight. If your small business uses a salary formula, sharing it can be especially helpful. Employees will see how factors such as seniority, education and performance affect pay. They’ll have a clearer understanding of the reasoning behind their current salary and a solid idea of how to increase it moving forward. In fact, research has shown that switching from pay secrecy to transparency can boost productivity.

Openness contributes to an atmosphere of trust.

Finally, if your small business prides itself on honest communication, salary revelations can seem natural. A team that sees commitment to fair compensation feels more appreciated and loyal. And with a common base to reference, conversations about salary can become more objective. The large raise a co-worker hired during an economic downturn receives to catch up with current standards will probably be viewed as warranted, not contentious. Trust that your small business employees want to make your workplace as great as it can be, and they likely won’t let you down.

Want more salary advice? Check out What to Offer Your Employees When You Can’t Offer a Raise

73% of Employers Would Negotiate Salary, 55% of Workers Don’t Ask

November 14th, 2016 Comments off
73% of Employers Willing to Negotiate Salary But 55% of Workers Don't Even Ask

“Show me the money!” is evidently NOT something a lot of job seekers are saying. According to new CareerBuilder research, a majority of employers in the U.S. (73 percent) say they would be willing to negotiate salary on an initial job offer. Still, more than half of workers (55 percent) do not even ask for a higher salary when offered a new position.

Employees who avoid the salary negotiation say they don’t even attempt it because they don’t feel comfortable asking for more money (53 percent), they are afraid the employer will decide not to hire them (48 percent), or they don’t want to appear greedy (38 percent).

In case you’re curious about the demographic breakdown, 48 percent of men said they would attempt salary negotiations with an employer versus 42 percent of women.

What Does This Mean For You?

Employers, don’t be afraid to have conversations about salary during a job interview —  even if it can be a bit awkward at times. Get comfortable with it! You don’t want to lose a great candidate because the topic of salary only came up at the last minute and you were nowhere near meeting their expectations.

Now, our survey showed that there are some occupations with notoriously higher turnover rates that rely on more part-time workers and are therefore less willing to negotiate than those that may require more education or experience. So for employers who are genuinely not in a position to offer a higher bid to the winning candidate, get creative about what else you can offer to round out the package.

For instance, you could consider offering one or more of the following perks or incentives in lieu of a higher salary to help you meet a candidate in the middle: vacation time, flexible work schedule, transportation allowance, tuition reimbursement, daycare reimbursement, a better title, a nicer office, etc.

Never miss a thing: Get CareerBuilder’s expert recruitment tips in your inbox.

Check Out These Salary Trends That May Surprise You

May 11th, 2016 Comments off
Check Out These Salary Trends That May Surprise You

Like man buns and raindrop cakes, there are some trends that have taken the nation by storm yet no one could have predicted them. Similarly, there are surprising salary trends that have taken place between 2010 and 2015 that talent acquisition pros like yourself probably couldn’t have predicted.

So settle in and take a look at some of these surprising salary trends that have taken place between 2010 and 2015 that you probably didn’t know about. And while you’re at it, get your hands on noteworthy salary trends as well as industry — and location — specific data so you can stay a step ahead of the competition.

Download CareerBuilder’s 2016 Salary Trends Guide right here.

Not Able to Offer Money? Offer Candidates a Future Instead

April 19th, 2016 Comments off
If you cant offer more salary, offer a future

A recent CareerBuilder poll shows that 55 percent of full-time workers feel they have a job, not a career. What does this mean for recruiters? As the number of unemployed job seekers gets lower and lower, you’ll need a number of tools in your arsenal to attract new hires.

1.    Higher compensation.

As an economist, I have to start with a hard truth: Offering higher pay IS going to get you better candidates — and more of them. According to our study using CareerBuilder data, a 10 percent increase in compensation is associated with a 7 percent increase in the number of applications. Furthermore, higher compensation attracts more educated and more experienced candidates.

2.    Career progression.

Perhaps you cannot offer higher pay right now. Or, maybe you still cannot attract enough candidates, despite offering a good compensation package. Another strategy that works is to make it clear the position can lead to new opportunities in the future. In a controlled experiment, my fellow economists Ashraf, Bandiera and Lee found that emphasizing the career prospects of a job leads to the hiring of people who perform 30 percent better!

3.    Offering a future.

Why does offering a career path help in attracting candidates? First, as we just saw, the majority of workers (55 percent) don’t feel like they currently have a career. So, if you are able to offer one, you are ahead of the competition. Second, offering a career path can compensate for a lower salary today: If people can expect to be promoted and get a raise in the future, the starting pay matters less. Third, a career path attracts people who want to work hard in order to be promoted. Finally, the prospect of a future with the company attracts more loyal workers who invest significance in their work and produce better results.

 

Learn how to use data from Talentstream Supply & Demand to benchmark salary for your open positions and find better candidates this year

Easy Ways to Save Money and Still Land Top Talent

April 15th, 2016 Comments off
Contextual search

Every company has cost-saving initiatives — some look to purchase materials that are less expensive while others seek to improve productivity and streamline processes. There are undoubtedly organizations that need to take more drastic steps, such as reducing salaries to meet cost-cutting goals.

In this last instance of adjusting salaries, labor market data can help your company make strategic recruitment decisions to source talent that may accept a lower starting salary — thus hopefully avoiding the need to cut compensation at a later date.

Emsi Analytics provides workforce data compiled from over 90 different sources in the U.S., including current compensation for each career. Examining the available data can help your company identify geographic markets that may offer top talent at a lower annual salary.

Let’s take a look at one example – sourcing for HR generalists on national and local levels – and derive some best practices.

Start wide and look for remote workers

National Salaries - HR Generalists

 

Using data and a map from Emsi Analytics, we are able to visualize the median hourly earnings of HR generalists on a national sale, and segmented into counties. You can see how heavily-populated areas correlate to higher salaries in the surrounding areas.

While not every position at your company can be staffed effectively by a remote employee, starting your search with a zoomed-out view demonstrates the savings on salary that may be associated with sourcing a remote worker.

Get granular when searching locally

Chicago Salaries - HR Generalists

A valuable labor market data tool should have the ability to pull detail that is specific to your exact local market. Emsi Analytics can provide salary details down to the county-level, so for this example, let’s examine counties in the Chicago area.

Containing Chicago — a large, densely-populated city — Cook County has the highest hourly pay for HR generalists in the area. If your company is located in the southwest area of Cook County and you are looking to save on salaries, consider advertising and sourcing in Will County where the median hourly earnings are $3.20 less than in Cook County. For a full-time role, this would equal over $6,600 in annual savings to the company.

 

Learn more about Emsi Analytics and the impact actual labor market data can have on your recruitment efforts.

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.

3 Tips for Setting Compensation and Retaining Employees

July 17th, 2015 Comments off
Determining compensation

How are raises decided in your company? Does the compensation structure reflect employees’ talent? If you are not rewarding talent, people may quit, and in the current economy, replacing them will be hard. More specifically, in the tricky case of a merger and acquisition, you want to restructure pay so that employees are kept happy and motivated, despite the many changes they are facing.

So, what pitfalls should an employer avoid when determining compensation for different employees? Recent research by my colleagues Arin Dube, Laura Giuliano and Jonathan Leonard sheds light on what to do – and not to do – when it comes to setting compensation.

1. A higher compensation increases employee retention

You may expect that a higher pay increases employee retention, and indeed, this is what the researchers found. So then, it would seem that increasing pay would help with retaining crucial employees. Yet, be mindful of how raises may affect the morale of other employees.

2. Beware of the unfair raise

If raises are not based on any objective criterion and seem arbitrary, employees who do not get a raise are much more likely to quit. A seemingly unjustified 5 percent raise to an employee will double the quit rate of a no-raise employee in the same position.

3. When it comes to employee retention, pay rates at your own company are most important

Will employees quit if you pay them less than the competition? It turns out that this is less important than paying them a fair wage compared to other employees in your company.

In a nutshell, to boost retention, it is important to make sure that your compensation structure is fair.

See how workforce analytics can help you determine compensation at your organization. LEARN MORE AND REQUEST A DEMO.

3 in 4 IT Employers to Offer Higher Starting Salaries

January 26th, 2015 Comments off
Talent Factor

Attracting top IT talent is tough in a competitive industry that’s filled with lush startups and big-name brands. IT employers are looking for new options to combat these hiring challenges by highlighting the perks of working with them — mainly in the form of financial incentives.

For instance, nearly 9 in 10 will raise wages for current employees, while 3 in 4 will offer higher starting salaries for new employees.

From increasing pay, to funding education, to giving workers more flexibility, IT employers are using a variety of tactics to attract and retain — and in some cases re-train — highly skilled employees.

Consider these stats:

  • Nearly 9 in 10 IT employers (87 percent) plan to increase salaries for existing employees, and 3 in 4 will do so for incoming employees (75 percent). Minimum-wage workers may also see a pay hike, with 47 percent of IT employers planning to raise their organization’s minimum wage.
  • Most IT employers (70 percent) plan to hire recent college graduates in 2015, and 52 percent plan to hire paid interns. Thirty-five percent plan to hire more recent college graduates this year than last year.
  • More than half of IT employers (53 percent) say they are likely or very likely to rehire retirees from other companies in 2015.
  • Three in 5 IT employers (61 percent) continuously recruit for positions that may open up down the line.
  • Half of IT employers (50 percent) are providing financial assistance for current employees who are going back to school to earn an advanced degree, with 1 in 4 (23 percent) footing the bill completely.
  • Three in 5 IT employers (60 percent) will offer employees more flexible work arrangements this year — mainly in the form of alternate schedules, compressed workweeks, summer hours, job sharing and sabbaticals.


What this means for you

Sixty-two percent of IT employers believe there’s a significant gap between the skills they need at their organization and the skills job candidates have, and 48 percent have open positions for which they cannot find qualified candidates. More than half (54 percent) have job vacancies that stay open for 12 weeks or longer.

If a skills gap is your primary hurdle in filling IT positions, consider the following options: Offer more competitive salaries, offer on-the-job training or incorporate more desirable employee benefits into the position. Candidates with transferable skills can also be re-trained to match your needs — these are all solid options to attract top IT talent.

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