Dive Brief:
- Businesses may need to increase salaries by as much as 3.5% to compete for talent for high-demand roles, despite the ongoing recession triggered by the pandemic, Randstad US said in a Jan. 12 report.
- The e-commerce boom has led to high demand for roles such as warehouse and logistics managers as well as assemblers — roles that will see the bulk of salary increases, the report said. Warehouse managers, for example, may see wages rise to as high as $43.21 an hour, according to Randstad US.
- "Despite labor market challenges associated with the pandemic, our data shows that many employers across a number of industries are still in desperate need of workers," Karen Fichuk, CEO of Randstad North America, said in a statement. "That demand is driving an uptick in compensation and benefits for these roles, and employers will need to meet these expectations to secure talent in a tightening labor market."
Dive Insight:
The pandemic derailed 2021 salary plans for many employers, and while many had to adjust projections downward due to fluctuating budgets, according to a Nov. 10 Gallagher survey, employers experiencing booms may see the opposite. Grocery manager position openings grew 648% on Glassdoor between March 2 and May 11, according to the employment site, while warehouse worker and retail merchandiser positions grew more than 20% — positions Randstad called out for salary increases.
Some employers have opted for benefit expansions to attract talent during this uncertain time; Lidl, for example, offered temporary hires free coronavirus treatment and testing benefits and enhanced its health package for existing employees by waiving copayments, coinsurance and deductibles, the company said.
Other firms, including Salary.com, have noted shrinking salary increases for the past two years. Employers may see an upward swing overall in 2021, however; only 7% of companies are not planning pay increases in 2021, "down significantly from 14% [in 2020]," according to Willis Towers Watson's 2020 General Industry Salary Budget Survey.
