Employee Compensation on the Rise
Economically, the end of the 2000s was a tough time for domestic and international citizens alike, but since 2011, the economy has been on a steady road to recovery. As businesses recover and gain momentum, many market watchers have noticed employee compensation on the rise and the competition for jobs increases. The demand for talent is at an all time high, meaning professionals can now ask employers, ïwhat can you do for me and my careerï
The Importance of Tracking Compensation Trends
Compensation does extend beyond payment as many professionals gravitate towards companies with forward thinking benefits, business practices and cultures. However, offering a competitive salary is a key step in attracting effective and motivated professionals. How do employers know what to pay their employees these days The answer is wonderfully simple: they use the Internet. With a few well-chosen key words, you can find government and independent resources tracking compensation trends by industry, occupation and location.
If you’ve been paying attention to your payroll (and of course you have!), you’ve already noticed average employee compensation on the rise, but what is everyone else offering When you approach the hiring process, understand that you are negotiating for talent and productivity. Like other areas in your business, you’ll get what you pay for and you have to find the balance between price and value. When you know what industry standards are, you’ll have a clear idea of how to set your employees’ salaries.
Thriving Cities Have Thriving Industries
In 2015, San Francisco, Chicago and Riverside showed the greatest net change in average salary, but why Each city is home to a host of thriving industries and serves as the main headquarters location for several enterprise giants. San Francisco benefits from the press of technological staples Google and Apple, but the area’s tourism is the lifeblood of the local economy and it houses Wells Fargo’s corporate quarters.
Chicago is a global financial center known for the Chicago Stock Exchange and Federal Reserve Bank of Chicago. The local also hosts over 400 corporations including the Boeing headquarters. While Riverside is known for its citrus industry, the economy relies on retail, education and manufacturing industries. The technology sector in particular shows employee compensation on the rise, and the city is expanding its technology sector with Riverside Regional Technology Park.
The Recovering Economy’s Leading Industries
Trends show employee compensation on the rise in the recreational industry was 2.7 in 2015, making it the best performing industry of the year. As the economy recovers, consumers seem more willing to indulge in luxuries like vacations and entertainment, which may also account for the 0.7 percent increase in the retail industry. In many cases, the economy’s recovery results in cyclical improvements in the market. As compensation continues to increase, consumers are more willing to spend in a variety of areas, creating the need for more jobs in their sectors of patronage.
The installation, maintenance and repair jobs along with healthcare practitioners and technical healthcare jobs sector are tied for second place with 2.2 percent increase in salary for professionals. Repair and maintenance staff can be found in a myriad of industries making use of mechanical and technological systems. Additionally, finance and manufacturing tied for the 5th best performing industry with 1.5 percent growth in employee pay.
Occupations on the Rise
As the industry trends would lead you to believe, the occupations are in the arts, entertainment and recreation sectors. Again, when consumers have extra money to spend, they’ll choose to indulge in more luxuries like concert tickets and hotel stays. The tourism industry’s management professionals will have certainly expected employee compensation on the rise as they secure new staff. With more patrons and enterprise expansion efforts, there is an increased demand for more and better talent in the industry. Business operation support serves fall in second place for 2015. These professionals can be found in call centers and similar support positions. As consumers purchase more goods, they’ll need the customer service to help them manage warranties and troubleshooting issues.
When you’re an employer, you want to maintain an effective and competitive hiring process. An essential part of that is offering your new hires an enticing employment package with a great salary. To arrive at the right numbers, you’ll have to do a little research and crunch the numbers with your accounting staff. Use Resume Builder resources to help you understand the payment trends in your city and industry, so you can secure the most promising talent for your enterprise.