According to Oklahoma City-based Express Employment Professionals, just 52% of hiring decision-makers in the U.S. expect wages to increase in the last quarter of 2020. A survey conducted by Harris Poll in late April through early May queried 1,005 hiring decision-makers across the country.
The poll illustrated a sharp decline from PayScale’s 2020 Compensation Best Practices Survey (conducted from November 2019 to January 2020) in which 85% of hiring managers expected to give base pay increases in 2020 after reporting that 82% of them had given increases in 2019. Of the respondents, 29% expect no change in wages and 16% expect wages to decrease in the final quarter of 2020.
Benefits continue to be more and more important for employee’s decisions on choosing and sticking with an employer. Regarding traditional benefit offerings such as medical insurance and 401K matching, 33% of the hiring managers surveyed expect their company’s benefits to increase this year and 53% expect these to hold consistent from 2019. Only 10% of U.S. hiring decision-makers expect their company’s benefit offerings to decrease.
David Robb, Director of Operations at the Grand Rapids, Mich., Express franchise says he “expects companies to either keep benefits the same or decrease them due to the financial hardships of the year. However, clients are offering more flexible benefits to accommodate situations that may arise at home due to the pandemic.
“For more professional positions, many companies are still working from home and new team members are even starting off working at home,” he said. “Companies are also providing more flexibility than ever before as kids start returning to school, or in many cases, participate in virtual learning at home.”
While wages and benefits are incredibly important for recruiting and retention, Express CEO Bill Stoller says employees often stay at companies for the full employment experience.
“Even when money is tight, employees need to know their efforts are appreciated,” he said. “In this unique time, being flexible with schedules and offering other nontraditional benefits in addition to a healthy company culture goes a long way.”
Express Employment Professionals is headquartered in Oklahoma City and has 825 franchise staffing locations internationally providing localized staffing solutions. Express was founded in 1983 among three franchisees of Acme Personnel Services, which had declared bankruptcy during the recession of the early 1980s. By 1986, Express was generating $38 million in revenues, and would grow to over $3.56 billion by 2018.