Human Capital & Careers

Study: Talent Will Cost More

Hiring qualified employees could hit companies in the wallet in the coming year.
Sarah JohnsonAugust 30, 2006

Good workers are getting harder to find for companies unwilling to pay. A survey released this week hints that CFOs could hear more pleading from hiring mangers to raise compensation packages to acquire highly skilled workers.

Fifty-five percent of hiring managers find it difficult to recruit skilled employees, according to staffing firm Robert Half International and job site Only 42 percent felt that way last year.

In the annual Employment Dynamics and Growth Expectations Report, one in five hiring managers have been hindered from finding strong workers because they’ve been unable to offer competitive salaries. But companies seem to be bending to the will of the talent they seek. Last year, 28 percent of hiring managers said they would raise compensation levels for job offers in the next 12 months, and this year, 36 percent said they would. Still, nearly 60 percent feel their task of finding qualified job candidates will be just as challenging in the next 12 months.

Hiring managers are more willing to spend their compensation pool on staff-level positions (36 percent)—the hardest group to fill with qualified workers. Other positions likely to garner more spending are director, manager, and team-leader positions (18 percent), and administrative and office support (13 percent).

Lack of confidence in the economy and job market, however, leaves potential employees unaware that they could ask for more money, the report concludes. While 45 percent of workers reported that their compensation increased in the past 12 months, 20 percent would be less likely to negotiate for more money from a potential employer.

The survey, conducted at the end of July, surveyed more than 3,000 workers, including more than 1,000 hiring managers.