This article on 2017 Salary Projections And Recruiting is part of a series of helpful business articles published by CNI Recruiting as a component of our commitment to World Class Service.
Salary Projections for 2017
According to most projections the labor market will continue to tighten in 2017, which will result in a modest increase in average employee salaries. The U.S. Department of Labor reported that the unemployment rate for December 2016 was 4.7 percent (down from 9.5% in June, 2009) and that average earnings increased by 2.9 percent. Increases were higher for certain locations and positions or for other reasons. For example, according to the New York Times, entry level software developers are currently being paid as much as $70,000 per year and some experienced sales representatives are obtaining base salaries of up to $150,000.
CNI Recruiting compiled projections for 2017 salary increases from surveys performed by nine respected sources:
• Aon Hewitt (provides human resources services) 3.0%
• The Hay Group (provides HR services) 3.0%
• Willis Towers Watson (provides data services) 3.0%, 3.1% for executives
• WorldatWork (provides compensation data) 3.0%
• Economic Research Institute (provides compensation data) 3.0%
• The Conference Board (provides business research) 3.0%
• Korn Ferry Hay Group (provides compensation consulting) 3.0%
• Empsight (provides compensation consulting) 3.0%
• The Federal Reserve Bank of Atlanta 3.6%
The average 2017 projected salary increase is 3.1%, which is up 0.1% from 2016. ERI’s projection of 3% represents an increase from their 2016 projection of 2.7%. Aon Hewitt’s projection of an increase of 3.0% of salaries is 0.2% higher than their 2016 projection. Willis Towers survey reported that in 2016 the best performing employees received an average salary increase of 4.6%, average employees received 2.6% and below-average employees received less than 1.0%. Also, it should be noted that the Society For Human Resource Management (SHRM) reports that organizations in the 90 percentile are budgeting for 3.5% salary increases in 2017. At CNI Recruiting we are seeing rapid increases in compensation for all technology positions, including technology outside sales, but only modest increases for inside sales compensation.
Innovative Compensation Plans
Many employers are moving to quarterly or annual bonuses and cash awards for specific achievements based on individual, team or organizational performance, rather than increases in base salary. This approach offers increased resource flexibility in that it does not require an advanced or long term financial commitment. The Hay Group’s, Aon Hewitt’s and Willis Towers’ surveys indicated that organizations are willing to provide significant cash awards based on performance. Aon Hewitt projects an increase of 12.8% of variable pay. Willis Towers projects that exempt employees will receive annual bonuses that average 11.6% of salary and achievement awards of 5.6% of salary in 2017.
Impact on recruiting
As the labor market continues to tighten and competition for top performers increases, you may want to consider engaging a recruiting firm to help you achieve your recruiting goals. CNI Recruiting recruits professionals at all levels for Commercial and Healthcare organizations. We are located in New Jersey and recruit throughout the U.S. We maintain an internal database of over 115,000 qualified candidates that allows us to quickly refer candidates who meet your job, cultural and budgetary requirements. Our referral fee is only 15% of candidate first year base salary including executive searches. We provide World Class Service and a market leading guarantee.
Please contact us today for recruiting assistance. Just call (908) 874-6148, email [email protected]ting.com, or fill out the form below. We will exceed your expectations.