Personal Finance

58 percent of workers to get a pay raise, study shows

Key Points
  • In addition to a majority of employers planning to give out raises to existing employees, 45 percent say they will increase starting salaries for new hires.
  • Nearly two-thirds of U.S. employers plan to hire full-time, permanent workers in the second half of 2018. That's up from 60 percent a year ago.
  • As companies compete for talent, perks like signing bonuses and extra time off are becoming more common.

It's a great time to be in the work force.

With the labor market tight and companies increasingly competing to attract and retain qualified workers, 58 percent of employers plan to give out raises by the end of 2018, according to a report released Friday by CareerBuilder. Pay bumps will be 5 percent or more at 24 percent of companies, the survey found.

The midyear forecast from the employment-focused website also shows good news for job seekers: Nearly two-thirds of U.S. employers (63 percent) plan to hire full-time workers in the second half of 2018, up from 60 percent a year ago. Additionally, 45 percent of companies plan to increase starting salaries.

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"Employees are really owning the market and in a position to negotiate," said Irina Novoselsky, president and COO of CareerBuilder.

The report includes data from online surveys conducted this summer of more than 1,000 hiring managers and more than 1,000 full-time workers across a variety of industries and company sizes.

Unemployment was 3.9 percent percent in July, according to the government's jobs report released Friday.

While low unemployment is good news for the economy, it means companies struggle to fill positions as the pool of available workers shrinks.

Extra perks from companies that are hiring

Casual dress code36 percent
Employee discounts31 percent
Ability to work remotely25 percent
Extra paid time off22 percent
Signing bonus21 percent
Free lunches14 percent
Gym memberships12 percent
Work from Home Fridays10 percent
Day care8 percent

Source: Source: CareerBuilder 2018 mid-year job forecast

The survey found that about 22 percent of workers are planning to find a new job before the end of the year.

"From an employer's perspective, it means high turnover," Novoselsky said. For employees, she said, it means "coming from a position of power."

Employers also are upping the ante by boosting their perks. Among those growing in popularity are signing bonuses and additional time off.

"It's really now about the whole package and not just about the salary," Novoselsky said.

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