Human Resources News & Insights

In hiring mode? Better haul out the checkbook

Is your organization planning on adding staff over the next three months or so? Be warned — a bunch of your competitors are, too. And that’ll probably mean a hike in your payroll costs.  

That’s the overall message in recent research from CareerBuilder, which says that 32% of the people who make hiring decisions at businesses of all sizes said they intend to hire additional full-time permanent employees in the next few months.

The biggest businesses were most likely to be in expansion mode. Fully 38% of businesses with more than 500 employees expect to hire in the current quarter, compared to 32% in the same period a year ago.

This time around, however, small- and mid-sized businesses are expected to join the talent competition. Many of those companies had remained cautious about their prospects for business growth in the recent past.

Now, 24% of small businesses say they plan to expand full-time headcount by the end of June, compared to 18% in the same period a year ago.

The pick-up in small business hiring has been showing up gradually over the past few months, Matt Ferguson, CEO of CareerBuilder, said in a press release.

“Small businesses have been playing a larger part in the solid stretch of job growth the U.S. has experienced over several months,” he said. “When you pair that with the fact that hiring has increased in a variety of industries and regional areas, it bodes well for workers seeking new and better-paying employment prospects.”

The price is going up

Recent growth may bode well for applicants’ prospects, but there’s likely to be a price to pay for employers, according to the CareerBuilder study.

There are signs that employers are feeling the pressure to raise salaries to attract the best candidates. Forty-three percent of employers said that they have job vacancies that have been open for 12 weeks or longer.

A majority of those surveyed said they plan to reward employees with raises during the present quarter. About 24% said they’ll increase salaries by at least 5%. Another 44% anticipate increasing salaries by 4% or less. In the hottest field, information technology, about 37% of employers expect to raise salaries.

IT is one of four industries whose employers are most likely to be in new-hiring mode. More than 40% of bosses in the transportation and financial services industries said they would be hiring, as did 32% of mid-sized health care companies.

Temporary or contract employment also is showing an upswing. Thirty-seven percent of employers plan to hire temporary or contract workers in the second quarter, up from 33% a year ago. And 31% plan to offer a permanent job to some contract or temporary staffers in the second quarter, up from 26% last year.

The survey was conducted for CareerBuilder by Harris Poll, and included a representative sample of more than 2,000 hiring managers and human resource professionals across various industries.

Print Friendly

Subscribe Today

Get the latest and greatest Human Resources news and insights delivered to your inbox.

Speak Your Mind