Skills Shortage Paying Off

It appears professionals may have more negotiating power with employers than they think. Fifty-five percent of hiring managers surveyed for this year’s Employment Dynamics and Growth Expectations Report said it was difficult to find qualified candidates 12 months ago; 81 percent said recruiting is equally or more challenging today. More than half of hiring managers who are having trouble recruiting cited a shortage of qualified professionals as the primary culprit. Nearly two-in-five hiring managers plan to increase starting salaries in the next year to attract new talent.

Although the balance of power may have shifted somewhat to favor highly-skilled workers, employees themselves are still feeling cautious about the job market and are less willing to negotiate higher salaries. Four-in-ten survey respondents categorized the job market as difficult 12 months ago and 85 percent said it is equally or more challenging today. Nearly one-in-five workers said they are less likely to ask for more money from a potential employer in the next 12 months, and the number of those who were more likely to negotiate increased compensation dropped significantly compared to one year ago.

In addition to stepping up measures to attract new talent, businesses are focusing on retention. Twenty-one percent of hiring managers reported their employee turnover rate is higher than it was 12 months ago; the same percentage expect it to be even higher 12 months from now. Thirty percent of hiring managers reported their firms have instituted new policies and programs to increase staff retention rates in the last 12 months, up from 23 percent this time last year. The primary measures taken included offering pay raises, bonuses, better benefits and more flexible schedules.

Investing in retention efforts is well-advised. Twenty-six percent of employees stated they are currently looking for a new job. Nearly three-in-ten plan to change jobs in the next year and two-in-five expect to do so in the next three years, similar to last year’s findings. The job benefits workers value most are health insurance, flexible work schedules and 401(k) plans.

The survey and report were developed by Robert Half International staffing firm and CareerBuilders.com For complete survey, visit www.rhi.com