It’s a great time to be working in the corporate sector. A new research shows that as more and more talented workers enter the labor market, employers are feeling an intense pressure to retain the best talent in their companies.
Salary is the most important factor that affects employees’ job satisfaction, which is why most employers are planning to offer raises by the end of 2018 as part of their effort to retain skilled workers.
Employers Face Intense Competition
As of July, the unemployment rate in the United States has dipped to 3.9 per cent. This is great news for hardworking Americans in the corporate sector who are now being offered more perks from their employers to prevent them from leaving the company. According to a new job forecast report by CareerBuilder for 2018, almost 58 per cent employers are planning to raise salaries before the end of the year to retain the best talent in the companies.
In its mid-year report, CareerBuilder surveyed 1,023 human resource managers and hiring managers as well as 1,014 employees from various industries in the private sector. The data showed that at least 22 per cent of the employees were planning to switch jobs before the start of the next year, despite the industry or the size of the company they were in. The online surveys were conducted by Harris Poll from June 21 to July 16.
Matt Ferguson, the CEO of CareerBuilder says that with too many Americans flooding the labor market and huge skill gaps among workers, employers are struggling to find people with the right skill sets to fill in roles at different levels within the organizations.
Half of the U.S. employers admitted in the surveys that they were spending more time recruiting talent for their companies that they had been in the past – a trend that will ultimately benefit job seekers in securing higher salaries.
Bumping Up Salaries
In order to encourage job applications from more skilled workers, almost 60 per cent of the employers have decided to bump up the salaries by 5 per cent or more by the end of 2018.
The report says that while 24 per cent of the companies are planning to give raises at all levels of the organization, 45 per cent of them will increase salaries only at starting levels.
The surveys also found that 63 per cent of the U.S.-based companies are planning to hire full-time employees in the second-half of 2018, in comparison to 60 per cent in 2017. Meanwhile, fewer employers are willing to hire contact employees or temporary workers (the number was down from 50 per cent in 2017 to 40 per cent this year).
Apart from salary raises and bonuses, employers are offering other attractive perks such as worker discounts, remote working opportunities, flexibility in working hours, paid vacations and casual dress codes.
According to the study, the most sought after industries in this year’s job market include business and product development, information technology and sales and customer service.
Wage Disparity in the U.S.
If you believe that the amount of time you dedicate to your job is worth more than your current salary then you’re not alone. A recent survey by Mercer found that employees consider salary is the most valued reward, but only 55 per cent of the American workforce is satisfied with their paychecks.
What’s even more surprising is that when salaries of were compared with their industry data, only 34 per cent of the employees were being paid fairly whereas 17 per cent of them were being overpaid.
Are you one of the 45 per cent U.S. workers who aren’t happy with their job because they feel that they’re rewarded unfairly? In order to determine if you’re really underpaid, you must do your industry research and market-based data based on your job title and region before asking for a raise or looking for a new job. Websites like Payscale.com, Glassdoor.com and Salary.com offer useful salary information based on experiences of current and former employees across various industries.
An increasing number of employers are now participating in regional surveys to help jobs seekers find companies that offer fair salaries to their employees. Some companies even give their workers access to the pay ranges in order to maintain transparency at workplace.