In an attempt to outbid other business owners from scooping up top-tier talent, companies are increasing their starting salary offers to job seekers who are on the hunt for a new job, according to newly released survey data.
In a poll of approximately 2,200 chief financial officers, more than half – 54 percent – indicated that they're tendering salary offers to employment seekers at a rate approximately 10 percent higher than this time last year, based on recent numbers collected by staffing and recruitment services firm Robert Half. Meanwhile, just north of 35 percent indicated starting salaries are the same as they were in 2015 and only 5 percent said they're putting less money on the table to woo hires onto their side of the street compared with 2015.
Paul McDonald, Robert Half senior executive director, pointed out that businesses today are in a better position economically than they have been in recent past. Because of this, they're more willing to offer a premium for upper echelon workers.
"Employers who want to improve their odds of securing skilled talent are offering highly attractive starting salaries right now," McDonald explained. "Companies are competing not just with other businesses that are hiring but also with the applicant's current employer, who may make a counteroffer to retain the services of a valued employee."
292,000 jobs created in December
Though financial experts stress that the economy isn't exactly firing on all cylinders – evidenced by a still weak gross domestic product rate – there's no denying that the employment situation has improved considerably from the Great Recession. For example, the private sector has seen consistent job growth for almost 70 consecutive months. And in December, approximately 292,000 jobs were created, helping to keep the unemployment rate to an 11-year low of 5 percent, based on data from the U.S. Department of Labor.
McDonald referenced how it's because of private sector job growth that business owners are raising the stakes, stopping just short of a bidding war.
"Professional job seekers with in-demand skills are receiving multiple job offers," McDonald said. "Employers need to put their best bid on the table – and do so quickly – or they risk losing good talent."
Benefits top of mind for employees
There's no denying that money talks when employees and employers are in formal discussions, whether starting a job or in the midst of performance interviews. In a separate poll conducted by Accountemps, salary was second only to workplace expectations and responsibilities for the most common questions professionals ask business owners during an interview.
Another line of inquiry that employees often pursue concerns employee benefits. Approximately 1 in 10 respondents in the Accountemps poll said that perks were something that they typically asked about when interviewing for a job, slightly ahead of queries on opportunities for advancement.
Bill Driscoll, Accountemps district president, indicated that the interview serves as a feeling out period for both employers and workers. From job seekers' perspective, questions should ideally be more broad as opposed to specific.
"It's better to pose big-picture questions so you can discover how aligned your skills and personality are with the role and the organization," Driscoll counseled. "You can delve into the details in future meetings."
