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Higher Salaries 2006 May 1st, 2006


Higher Salaries 2006

Higher salaries among key trends in 2006

Higher starting salaries, increased compensation levels for existing talent and more flexible work arrangements are among the benefits executives have to look forward to this year, according to a survey of hiring managers.

“With the economy and job market expanding at a healthy pace and the labor force tightening, the competition for skilled employees is intensifying.” said Richard Castellini, Senior Career Advisor at CareerBuilder.com, which partnered with America Online to produce the survey “Key Hiring Trends to Watch in 2006” which polled 1,300 hiring managers nationwide.

“Half of hiring managers expect to offer more generous compensation packages for new employees and three-fourths expect to increase pay for their current staffs in 2006.” Castellini said.

“The survey shows that the road to a new job will be a quick and competitive one this year. Employers are looking to make great hires, and hoping to do so quickly," added Samara Jaffe, director of AOL Careers.

A competitive year for employers looking to snatch up the best executive talent will mean increased salary offers, according to the survey

  • 32 percent will raise offers by 3 percent or more
  • 16 percent will increase offers by 5 percent or more
  • 51 percent of hiring managers plan to increase salaries on initial offers
  • 78 percent of hiring managers plan to increase paychecks for existing employees
  • 22 percent of hiring managers will raise compensation levels by at least 5 percent
  • 57 percent of hiring managers plan to raise compensation levels by at least 3 percent

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