2018 has been a tough year for employers looking to attract new talent into their companies, but it’s the exact opposite for jobseekers. As employers grapple with a highly competitive hiring environment that is causing prolonged job vacancies across the U.S., workers are reaping the benefits.
According to CareerBuilder’s Midyear Job Forecast, 63% of U.S. employers plan to hire full-time, permanent workers in the second half of 2018, up from 60% last year. A substantial percentage of employers hiring in the second half of 2018 are expecting to offer higher salaries and various perks— such as signing bonuses, extra paid time off, free lunches, and the ability to work remotely—to attract and keep the talent they need.
“Another month of steady job growth and record-low unemployment is good news for the economy, but has some employers desperate to fill open positions,” said Hary Bottka, executive at global human capital solutions provider Randstad Sourceright. “Some are even starting to abandon experience and educational requirements.” In order to get the right talent in the door, employers need to start thinking outside the box when it comes to candidate attraction.
“Rather than lowering standards, savvy employers should search for hidden pools of talent others may have overlooked,” Bottka noted. “When the job market gets this tight, companies can stay ahead of the competition by tapping freelance or contract workers, or by enticing individuals who may have dropped out of the labor market years ago with perks like flexible work arrangements, career development opportunities and bonus incentives.”
Compensation and Perks Used to Attract Talent
Employers expect to provide a greater financial incentive to new workers and existing staff. Forty-five percent plan to increase starting salaries on new job offers in the back half of 2018; 23% of all employers plan to increase starting salaries by 5% or more. Fifty-eight percent of employers will increase compensation for current employees before the end of the year, with 24% of all employers planning an increase of 5% or more on average.
The study shows that compensation increases aren’t limited to high-skill positions. Looking at a subset of Human Resource managers, 71% believe they have to pay entry-level workers more money because of tight talent pools.
In an effort to draw in more applicants and, ultimately hires, employers hiring in the second half of 2018 said they would be highlighting different perks in their job offers:
- Casual dress code—36%
- Employee discounts—31%
- Ability to work remotely—25%
- Extra paid time off—22%
- Signing bonus—21%
- Free lunches—14%
- Gym memberships—12%
- Work from home Fridays—10%
Hot Areas for Hiring
From a functional standpoint, the top roles employers hiring in the second half of 2018 say they will be hiring include:
- Customer service—41%
- Information technology—22%
- Product development—16%
- Business development—16%
Other Trends to Watch
More jobs getting technical—Sixty-nine percent of employers said every job is essentially a tech job because every job has some technical component to it today. That sentiment is reflected in how employers recruit and interview for different roles.
Higher employee turnover—With job growth continuing at a healthy clip, more than one in five workers (22%) reported that they are likely to change jobs in the second half of 2018.
Companies hiring for gigs—Forty-one percent of employers plan to hire temporary or contract workers in Q3. While trending down from 50% last year, temporary or contract hiring continues to be a key way employer fill employment gaps and recruit permanent staff.
The national surveys, which were conducted online by The Harris Poll on behalf of CareerBuilder from June 21 to July 15, 2018, included representative samples of 1,023 hiring managers and human resource managers and 1,014 full-time U.S. workers across industries and company sizes in the private sector.