Companies increasing starting salary offers to secure new hires
Companies are willing to pay a premium for top talent today, new research shows. More than half (54 percent) of chief financial officers (CFOs) interviewed for a Robert Half survey said they increased new hires’ starting salaries from what they made in their previous job. The average increase, according to financial executives, was 10 percent.
“Employers who want to improve their odds of securing skilled talent are offering highly attractive starting salaries right now,” said Paul McDonald, senior executive director for Robert Half. “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.”
CFOs who hired new staff in the past year were asked, “Compared to what your new hires earned at their previous employer, on average, did you increase or decrease their starting salaries?” Their responses: Increase—54 percent; The same—36 percent; and Decrease—5 percent.
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CFOs who are paying the higher starting salaries were asked, “On average, how much did you increase (new hires’) starting salaries compared to their previous employer?” The average response was 10 percent.
When asked how the pay increase compared to what they offered two years ago, 68 percent of CFOs said today’s salaries were at least somewhat higher.
“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.”
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