Andrew R. McIlvaine, who writes for Recruiting Trends, brings to light some measures that hiring managers are taking to try to attract talent in an ever-shrinking talent pool. The latest information from CareerBuilder’s Midyear Job Forecast includes a predicted salary hike by at least 39% of employers in the second half of 2016. Another 70% of HR leaders advised that they will have to start paying workers increased wages as the market continues thin.
Matt Ferguson, CEO of CareerBuilder, says that, “Wages will represent the biggest area of change.” The wage increases won’t happen overnight, but their survey indicates hiring managers are planning for the worst with the best possible compensation they can offer.
The CareerBuilder survey of 3,244 full-time American workers and 2,153 hiring managers took place in the spring of 2016, and indicated that 20% of the polled organizations have plans to offer higher starting salaries going into the second part of 2016, by as much as 5% higher. Another 53% plan to raise starting salaries by more than 5%.
The findings of the CareerBuilder survey validate that in certain markets there are definitely shortages of skilled candidates. The hottest job markets are predicted to be in customer service (29%), sales (27%), information technology roles (25%), and production (20%). The companies that are experiencing the highest rate of growth and are focusing on improving compensation plans are those with 250-500 employees.
The good news, says Ferguson, is that the US job market looks steady, and, “While certain industries or locations may produce more job growth, hiring overall will hold steady throughout the election season and through the end of the year.” Hiring is tough right now for many companies, but by being smart with recruitment incentives, the outlook for talent looks positive.