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Big salary increases will be for new hiresonly. "Employers are going to continue to break rules and play with fire by bringing in new talent at salaries higher than tenured employees on staff," says Lewis. "A lot of employers have gotten used to the idea that they can give existing employees a 2 to 4 percent increase, while bringing in new people with bigger increases.
given average increases of 4 percent or a few tenths of a percent more, the Menlo Park, Calif., staffing Nike Hoodie With Logo On Sleeve firm says.
One thing's for sure: Workers aren't entirely satisfied with their downsized wage increases. But where do the realities of the economy and the labor market leave employers and staffing firms as they enter 2014 salary negotiations?
Accounting/Finance compensation will trend a bit higher than average. "The market for experienced accounting and finance professionals has tightened dramatically in many areas." So says Robert Half's 2014 forecast for accounting and finance professionals.
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IT, healthcare, energy will earn significantly more. A very few industries and occupations will see salary increases significantly higher than average this year. "Wages are very job and industry dependent," says Bardaro. "Tech has been one bright spot. Their wages are still seeing real growth because open positions are much greater than the supply."
Yet, according to the report on salary trends, all related occupations except a very few will be confined to base pay increases of 3 percent to 3.9 percent. Only some controllers and internal auditors will be Nike Windrunner Turquoise
In real terms, wages have backtracked in recent years. Nike Hoodie Obsidian
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Performance pay will rise with business success. In the wake of the recession, many organizations have permanently stemmed their appetite for risk, and that includes payroll. The limiting of pay hikes reduces this risk, and bonuses based on company performance provide a further hedge.
Young workers will constrain average earnings. Most of us know members of one unfortunate class of workers: unemployed and underemployed Millennials. The huge overhang of these youthful entrants to the job market "will hold down wages for them for the long term," says Bardaro.
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In 2014, merit pay increases for exempt employees will continue in a fairly low range: 2.8 percent to 3.1 percent. That's the consensus of compensation trends predicted by seven organizations surveyed by Kutchins, Robbins Diamond.
Market forces will temper merit increases. The lean macroeconomics of the 2010s still determine a lot about salary trends. "We expect more of the same modest merit increases, primarily due to low inflation and high unemployment," says Bruce Elliott, manager of benefits and compensation at Society for Human Resource Management in Alexandria, Va.
2014 Salary Trends that Will Impact Staffing
Bardaro also expects less robust but still greater than average increases in healthcare, due to the ever increasing demand driven by healthcare reform and the aging population. And the oil and gas industries have seen the most wage growth since 2006: a cumulative 18 percent.
When you include factors such as attrition of more expensive experienced employees, "with a 0.2 percent increase overall, wages are essentially flat" even before they are adjusted for inflation, says Katie Bardaro, lead economist at compensation consulting firm PayScale in Seattle. "So in real terms, wages are down significantly."
Workers begin to feel empowered as job loss fears abate. Smart employers are moving beyond the assumption that job security will trump all else in 2014 salary negotiations. "I think that's coming to an end now," says David Lewis, CEO of OperationsInc, a 40 person HR outsourcing and consulting firm in Norwalk, Conn. "Employees are more confident, and they'll be asking for higher increases."
Hot specialists can earn outsize pay hikes if they change employers. Some technical and management big wigs in very short staffed specialties will be able to win outsize salary increases in 2014 if they're willing to change employers. "But moving to another organization, an in demand specialist could get a 20 percent to 40 percent increase." Among the contenders: medical directors, oncologists Nike Crewneck Sweatshirt Red
And that typical increase of about 3 percent is roughly 1 percent below the pre recession average, according to a report from the Society for Human Resource Management (SHRM).
and healthcare economists.
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"Year end incentives are tied to profitability, and profits are up significantly, so I expect bonus compensation to rise," says Elliott.
Here are eight top takeaways on 2014 salary trends.
But this is nave, because now salary information is typcially posted somewhere, and everyone finds out."
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