Nearly two-thirds of U.S. companies (62%) are willing to increase their base salaries in order to attract new and salaries employees within the next six months, according to new data published by Salary.com.
The report found 82% of employers perceiving a current shortage in employee talent. For job hunters, that has resulted a marked increase in their wages; 67% of workers surveyed said their starting base salaries were above their market reference point.
The push for increased pay has resulted in a new median bonus of $1,000 for hourly employees and a median bonus of $5,000 for salaried employees. But whether this will be a new normal remains to be seen; although 50% of employers surveyed are now offering signing bonuses, only 20% expect to still be doing so by the end of the year.
“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.”
Data was collected between June 9 and July 15, with 405 organizations participating in the survey.
