Since we’re well into the fourth quarter of 2016, by now many companies are in the final recruitment planning stages for 2017 and some already have their budgets set. Unfortunately, one growing trend that could impact their efforts is an increase in starting salaries. According to a newly released guide, starting salaries are set to increase for some occupations. The guide reports that the “national average starting salaries for U.S. professional occupations are expected to increase 3.6% next year.” The sectors that are poised to be impacted the most are: Technology, Finance and Accounting, Legal, Creative and Marketing, Administrative and Office Support.
That increase isn’t too surprising in the Technology space, but for those planning on general Marketing and Office Support, the increase can be a real challenge for businesses. The rise in starting salaries has been attributed to the lack of skilled professionals that are in high demand from employers. In short, companies are willing to offer higher starting salaries to get what they feel is the right fit for their open position. Let’s take a look at the highlighted industries from the guide.
• Technology: The estimated overall increase reported from the guide is 3.8%. Positions such as Data Scientists are expected to increase the starting salary an upwards of 6.9%, while a Network Security Engineer position is projected to increase a starting salary by 5.7%. For technology as well as others groups, there isn’t much of a surprise given the growing and long-term need for tech professionals.
• Finance and Accounting: The Finance industry isn’t far behind Technology at a 3.7%. According to the report some of the most in-demand positions are analysts, controllers and accountants to include the following: Financial Analysts (4.3% increase), and Controller (4.2% increase), and Staff Accountant (4.1% increase).
• Legal: Legal starting salaries are expected to increase an upwards of 3.6%. Many of the increases are for support positions like paralegals and contract managers. For example, a Senior/Supervising Corporate Paralegal positions is expected to increase by four percent.
• Creative and Marketing: Overall the Creative and Marketing industry can expect a starting salary increase of 3.6%. According to the guide, positions like copy writers specializing in search engine optimization are highly needed as well as other creative positions. Front-end web developers, for example, are in high demand and their positions are expected to increase by 6.2%.
• Administrative and Office Support: Perhaps one of the most surprising groups is the administrative one where the overall expected increase is approximately 3.5%. Employers can’t afford to overlook the admin/office support positions such as Customer Service Representatives and more. Executive Administrative positions are in demand and their starting salaries are estimated to increase by nearly four percent.
Some employers may already be experiencing the rise in demand with some of these groups and have already adjusted their planning strategies for the increases mentioned. Other employers, who are not be aware of these salary insights, will want to review this guide to improve their planning for next year. If you’re in the throes of recruitment planning and are looking for guidance with either planning, budgeting or even finding candidates, give us a call at 847-619-1600.
ABOUT THE AUTHOR, Ingrid Moore
Ingrid Moore is the President and Owner of Corporate Resources of Illinois, an employment & staffing agency with over 20+years’ experience located in Schaumburg, IL. Ingrid and her team assist employers with finding the right hire for their business. For more info, follow us on our LinkedIn Company Page, or follow us Corporate Resources of Illinois‘s Google+ page.