More than half of C-suite executives surveyed (56 percent) said they have observed salary discrepancies between new hires and more- tenured staff in the past year. Of those, 62 percent are regularly reviewing compensation plans and increasing salaries for existing employees, when appropriate, to align with current, rising market rates. That’s according to new research from […]
More than half of C-suite executives surveyed (56 percent) said they have observed salary discrepancies between new hires and more- tenured staff in the past year.
Of those, 62 percent are regularly reviewing compensation plans and increasing salaries for existing employees, when appropriate, to align with current, rising market rates.
That’s according to new research from Robert Half, a Menlo Park, California–based talent services and business consulting firm.
“Market conditions have shifted dramatically, and savvy employers are stepping up to address salary gaps and ensure all employees are being paid fairly,” Paul McDonald, senior executive director at Robert Half, said in a release. “They know that taking a cautious ‘wait-and-see’ approach on compensation is risky and can lead to the loss of great talent.”
Workers expect a raise
Employees’ expectations are among several factors that are at play when it comes to wage growth, Robert Half said.
In a separate survey of more than 1,000 U.S. workers, one-third of respondents (34 percent) said they have not had a raise in 12 months and another 16 percent received one but were disappointed with the amount.
In addition, nearly two-thirds (62 percent) plan to ask for a raise this year. The top reasons cited include to adjust for the higher cost of living (30 percent), to reflect current market rates (23 percent), and to account for additional job responsibilities (22 percent).
If workers don’t get a raise, that separate survey found 31 percent will ask to revisit the salary conversation in a few months, 27 percent will look for a new job with higher pay, and 23 percent will ask for more perks.
“In addition to setting competitive salaries, companies must consider the entire employee experience and deliver programs that satisfy their professional and personal needs,” McDonald noted. “Career advancement and remote options are two big priorities for workers today.”
Robert Half developed the online surveys, which independent research firms conducted. They include responses from 376 C-suite executives across a “diverse range” of industries that were collected between Feb. 25 and March 8 of this year. In addition, more than 1,000 workers 18 years of age or older in the U.S. responded to the separate survey, and those responses were collected from March 3-11.
Robert Half (NYSE: RHI) offers contract, temporary, and permanent-placement options and is the parent company of Protiviti, a global consulting firm.