Workers Now More Likely to Negotiate for Higher Pay

If you’re planning to make new hires in 2008, you may need to boost starting salaries to attract candidates in the hottest specialties and keep pace with competing firms.  Many workers – particularly professional-level staff, such as accountants – are receiving higher pay and feeling more optimistic about their ability to negotiate with future employers, according to the recently released 2007 Employment Dynamics and Growth Expectations (EDGE) Report.  Now in its third year, the annual survey from Robert Half International and CareerBuilder.com highlights a range of employment, hiring and compensation trends from the perspectives of hiring managers and employees.

Fifty-eight percent of workers polled said they are more likely to negotiate a better compensation package today compared to 12 months ago.  This is a noteworthy increase from 2006 when only 29 percent of respondents said they would try to negotiate a more lucrative offer.  Moreover, 55 percent of employees polled said their compensation has increased over the last 12 months.

Meanwhile, hiring managers said it’s harder to attract skilled workers, especially for professional/technical staff-level positions and supervisory roles.  The vast majority (91 percent) of employers said it is equally or more difficult to find qualified candidates compared to 12 months ago.  The low unemployment rate (around 2 percent) for college-educated workers is contributing to the recruitment challenges, according to the study.

This is the third consecutive year that hiring managers reported a competitive recruiting environment.  Companies should consider loosening the purse strings to attract and retain top performers, in addition to offering appealing programs and work arrangements.  For instance, the top perks that workers said would cause them to choose one job over another were flexible schedules (65 percent), telecommuting options (33 percent) and employee stock purchase plans (33 percent).