If you’re looking to hire this year, get ready to dive deep into that wallet because talent doesn’t come cheap these days.
Despite the uncertain economic outlook for the first quarter of 2021, businesses will need to increase salaries by up to 3.5% for high-demand roles in order to remain competitive in the race for top talent, according to a new report by Randstad US.
With online orders expected to reach almost $477 billion by 2024, demand for jobs in industries like manufacturing and logistics has risen during the pandemic, and employers will need to adjust their compensation and benefits plans in 2021 to attract and retain employees.
How Much Will Talent Cost?
Data from the Randstad US Salary Guide suggest that some of the largest salary increases will occur for roles like warehouse and logistics managers in response to a rise in e-commerce activity. Salaries for warehouse managers, for example, need to increase 3.5%—to as much as $43.21 an hour—to remain competitive. Logistics managers will need an increase of up to 3.5%, to $45.95 per hour.
The report also anticipates salary increases for assemblers as U.S. factory activity hits its highest level in nearly 2.5 years. For example, the report suggests that businesses will need to increase salaries by over 2.4% for assembly line foremen to as much as $32.37 per hour. The Randstad US Salary Guide also notes consistent increases in the competitive pay rate for technology and skilled roles nationwide.
“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,” says Karen Fichuk, CEO of Randstad North America, in a press release. “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.”
Competition for Talent Still Remains Fierce
The growth in salaries is good news for jobseekers hoping to switch careers amid the pandemic, especially as many companies have placed an emphasis on skilling initiatives. However, it also means that employers will likely compete for key new hires across a number of industries in 2021.
Other positions in fields like online sales and marketing are also experiencing an increase in demand and will likely see salary increases in 2021. E-commerce business analysts and marketing media managers, for example, are likely to see a 0.5% increase in salaries, hitting highs of up to $107,107 and $131,130, respectively. This is largely due to the recent rise in e-commerce during COVID-19, which has accelerated a shift away from brick-and-mortar stores to digital shopping by up to 5 years.
Every year, Randstad US publishes its salary guide to highlight compensation information across many fields and industries in key geographic markets. Salaries in specific regions may vary based on local market conditions and position-specific requirements such as experience levels, professional certifications, or knowledge of certain software. In addition, the salary data have been drawn from multiple industries and may not accurately portray a company’s specific situation.
The salary data are a combination of proprietary Randstad US information and data provided by Emsi, Burning Glass, and the U.S. Bureau of Labor Statistics. To learn more, click here.