Last month, we featured some of the latest findings from a 2017 published report on HR Statistics and Recruiting Trends. This particular segment in the report included key information on Millennials, Women, CEO advice and more, helping employers and hiring managers understand the hot topics trending in the recruiting world. Additionally, we added some of our best recommendations on managing these issues and more. If you have not done so, please take a moment to review the key findings and our advice. This month, we continue on with same published report, reviewing a particular segment on Compensation. Compensation can be an enticing factor to be sure, but it also can be a deterrent when candidates consider their employment opportunities.
Many of these findings are from the 2016 year but are still relevant when considering today’s compensation wants and demands. Below is the breakdown of some of the statistics we believe are still making an impact in 2017. As the need to hire the most skilled workers increases and as budgets tighten for the second half of the year, knowing and understanding these compensation statistics is to your benefit. First, let’s take a look at the Compensation statistics.
* Men earn 24.1% higher base pay than women on average
* 68% of women accepted the salary they were first offered and did not negotiate. For women age 45–54, that number was 77%.
* 67% of U.S. employees said they were not likely to apply for a job at a company where men and women were paid unequally for the same work.
* 49% of employed adults in the U.S. feel they must switch companies in order to obtain any meaningful change in compensation.
* 95% of employees reported that compensation/pay was important to their job satisfaction, but only 65% were satisfied with their compensation.
* 69% of employed adults in the U.S. wish they had a better understanding of what fair market compensation is for their position at their company within their local job market.
Understanding the Statistics
Men versus Woman Equal Pay: In the US Department of Labor, Bureau of Labor Statistics, the Data for men and for women in 200 occupations shows similar findings in 2016. The median number of workers for full-time men workers is 61,930 and women full-time is 49,161. The Median weekly earnings for men is $915 while women average $749. According to that statistic, women are paid approximately 22% lower than men.
Repairing Base Pay Discrepancies: Much of what changes a base pay depends upon budget and a candidate’s overall experience. Decide what you’re willing to pay and make adjustments based on typical allowances such as experience. If you’re concerned about where your pay ranges, use guides like these 200 occupations. Even a professional recruiter can be an excellent source for base pay.
Remaining Transparent: How transparent should an employer be during the hiring process? To start, be clear about expectations up front. This initial trust process is the most important to maintain during all aspect of hiring for both the employer and candidate. Research which companies are having the best success with their transparent policies. Determine internally what information would be vital for your potential candidates to know and why. Remember, in the future, many job seekers will look for more transparency from companies so it’s important to start planning and implementing today.
As the workforce continues to change, expect compensation to as well. Staying on top of these trends and more may get more challenging as Generation Z enters the workforce. If you’re struggling with meeting some of your candidate’s compensation demands, you may need a third-party consultant like a reputable recruiting firm to review your hiring process. Our firm has over twenty years working with medium-large size businesses, assisting them with finding and hiring some of the best talent in the Chicagoland area. Contact us for a free consultation.
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.