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62% of Employers Plan to Increase Base Salaries to Attract New Employees According to New Salary.com DataWALTHAM, Mass., Aug. 12, 2021 /PRNewswire/ -- Job seekers hoping to secure signing bonuses had better move quickly, as employers are indicating in a new Salary.com survey of U.S. companies that these bonuses are a short-term fix for widespread talent shortages. While 50 percent of employers surveyed are offering signing bonuses, only 20 percent expect to still be doing so at the end of 2021. This is not bad news for new hires, however, as more than 62 percent of organizations are planning to increase base salaries to attract new hourly and salaried employees within the next six months, which will increase their labor costs. Even more promising news for job seekers: 67 percent said their starting base salaries are above their market reference point. Snapshot: Signing and Retention Bonuses Retention bonuses have been leveraged by 21 percent of companies surveyed. Of those, 38 percent offer these bonuses to both salaried and hourly workers.
Snapshot: New Hire Salary Increases "The prevalence of signing bonuses to attract workers in high demand and short supply has proven to be a short-term phenomenon, as organizations move to a post-pandemic reality," said Garry Straker, compensation consultant at Salary.com. "The shift to salary increases for new hires will have greater long-term impact, so organizations will have to move with care to attract new hires while retaining existing employees. Retention of current employees will require proactively monitoring and addressing salary compression. Incumbent employees who see new hires making as much, or more than themselves may feel they are being treated unfairly and be tempted to look elsewhere to attain a higher pay rate." According to Straker, as companies work to address internal and external labor market dynamics, there will be an increased focus on HR metrics, the benchmarking of market data, as well as gauging employee sentiment. He noted this is particularly true in an environment where employee expectations have changed and there is heightened awareness of pay equity issues. In states such as California and Connecticut, where pay transparency is required, the challenges and risks become greater. "It's important to realize it's not just about pay for today's employees, many of whom have expressed a strong preference for flexible work arrangements, advancement opportunities, greater diversity and alignment of cultural values that can make an employer attractive," said Straker. Survey Methodology ABOUT SALARY.COM The market-leading CompAnalyst® SaaS platform accelerates compensation workflows, delivers real-time data, and powers accurate, equitable, and competitive compensation. Through its Salary Wizard and pioneering website, Salary.com delivers continually updated, reliable market pay data and career content to over 30 million visitors each year. For more information, please visit the company website at www.salary.com. Media Contact: View original content to download multimedia:https://www.prnewswire.com/news-releases/62-of-employers-plan-to-increase-base-salaries-to-attract-new-employees-according-to-new-salarycom-data-301353906.html SOURCE Salary.com, Inc. |