45% of America’s Hiring Managers and Recruiters said Positions are Unfilled due to Salary Constraints
America’s professional workforce is set to expand in the New Year with 55 percent of hiring managers and recruiters planning to hire more professionals in the first half of 2014, than they did in the second half of 2013. That’s up nine percentage points from the same period a year ago and the highest level on record since the question was introduced mid-2010 into the national hiring survey conducted by Dice Holdings.
By comparison, six months ago 52 percent of hiring managers and recruiters predicted an increase in their staff in the second half of 2013, compared to the first half of the year.
“There’s no doubt the job market for professionals has been carrying the load for several years in new job creation. That’s why it’s encouraging that more companies are willing to step up the pace of hiring the further along we get in this recovery,” said Michael Durney, President and CEO, Dice Holdings, Inc. “For those intentions to be realized, companies need to rethink their approach to attracting candidates or they are at risk of falling behind.”
For those hiring managers expanding staff in the first half of 2014, 42 percent said they plan to hire up to 10 percent more employees, than the second half of 2013. About one-third (32%) of respondents expect to fill between 11 and 20 percent more positions, while 18 percent of managers expect to be more aggressive with between 21 and 30 percent more professionals hired in first six months of 2014.
Candidates with two to five years’ experience are the most sought-after, followed by candidates with six to 10 years’ experience. The demand for professionals with six to 10 years of experience rose from 49 percent six months ago to 53 percent, reflecting hiring managers and recruiters desire for more experienced professionals.
The Money Barometer
Hiring managers are responding to a more competitive market by adjusting compensation, but that’s not always enough to satisfy demand or incentivize candidates to move. While 46 percent of hiring managers reported seeing higher salaries for new employees, a similar number of respondents (45%) said positions were going unfilled because of the salary guidelines for the role.
Candidates are becoming slightly choosier about job offers. Twenty-six percent of hiring managers and recruiters said they have seen an increase in the number of candidates rejecting offers, compared to six months ago. That is more than double the percentage of respondents who said more candidates are accepting offers (12%).
Compared to six months ago, the same number (39%) of hiring managers and recruiters said voluntary departures at their companies or their clients’ companies had increased this year. That said, retaining professionals may be costing companies a bit more as counteroffers are on a steady uptrend. About one-third (34%) of hiring managers and recruiters said they are seeing more counteroffers from a candidate’s existing employer or offering more counteroffers to retain staff, compared to six months ago. When asked previously about counteroffers, 31 and 26 percent of hiring managers said they were being used more frequently at mid-year and in late 2012, respectively.
When asked why candidates are choosing to leave their current positions, hiring managers most frequently cited these reasons as consistent with previous readings – increased salaries, better opportunities elsewhere and better title or a promotion.
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