A recent survey of 571 global organizations by the Human Capital Institute and Aerotek, found that 51 percent of respondents pay below their industry competitors. The survey also discovered that respondents are twice as likely to say that they struggle to fill senior-level positions if they pay below their competition.
Employee Compensation Compared to Market Industry Competitors
Source: Aerotek and Human Capital Institute
Experts say that above market compensation is associated with higher engagement and less turnover. Traditionally, companies with revenue growth below their industry peers are four times more likely to pay below their competition.
A different survey by CareerBuilder on salaries found that 65 percent of full-time workers in the U.S. say that they do not currently earn their desired salary. Among the 65 percent, when asked how much they would have to earn before reaching their desired salary, the majority said $75,000 to $100,000.
“The survey supports past research suggesting that the $75,000 threshold is particularly significant, as this level allows households in most areas of the country to not only get by, but enjoy an ideal lifestyle and a secure future. Interestingly, what workers would ultimately like to earn does not necessarily factor into what they need for a successful career.” ~Rosemary Haefner, Vice President of Human Resources at CareerBuilder.
Percentage Who Earn Desired Salary, by Income Level
The survey found that while almost two-thirds of workers were not satisfied with their earnings, most believe that they can feel successful without earning large paychecks. More than half (55 percent) said that they can feel successful making less than $70,000, and 78 percent do not think that they need to earn $100,000 or more to be successful.
“In many cases, success is relative to the type of work individuals do or their current career stage. Regardless of income, we found that workers tend to find success near their own salary level or in the range directly above. This is healthy because it shows workers can derive meaning from their work at any level while still striving for that next promotion or raise.” ~Rosemary Haefner, Vice President of Human Resources at CareerBuilder
“What’s going on is companies are claiming that they can’t find the skills that they need. What is unstated is that companies can’t find the people with the skills that they need at the amount that they want to pay or the training investment that they want to make.” ~Timothy Gardner, Associate Professor of Management at Jon M. Hunstman School of Business, Utah State University.