I think an important thing to recognize from this article is the increase in turnover rates that companies may see in the year to come. Employees will have more opportunities to choose from with a possibility of a higher base salaries. Engagement and retention of skilled employees will be key in any company’s growth for the future.
“US employees will witness a median base salary increase of 3% in 2015”, Robin Dupre reported on OilPro. The forecasted base salary increase is reliable for what has been reported in the past four years and is expected show equal increases across executive, management, professional, clerical and operation roles.
Although increases in base salary rates are still below pre-recession levels, companies are having difficulty finding a balance between maintaining focus on managing labor costs and improving employee engagement and retention levels, reported a management consulting firm representative. Labor markets will continue to increase as the economy continues to improve. High demand jobs will be in the spotlight, “making it crucial that companies take steps today to secure long-term commitment from their best talent.”, the consulting firm representative also suggests.
Topping the list in high base salary increases is the Oil and Gas industry and employees can expect a median base salary increase of 4 % next year.
“In most industries, however, we see significant employee flight risks given the improving economy and more employment for skilled workers.”, Dupre explains. Employers need to think of the future growth of their company and manage the risk of their employees leaving, or they could be at a loss of talent due to overlooking these changes in the labor market.