Finance chiefs are shelling out more than they expected in wages as job candidates press for higher salaries amid a tight labor market.
Fifty-four percent of U.S. employees and managers say they tried to negotiate higher pay with their last employment offer, a survey released this week by staffing firm Robert Half International Inc. says. That is slightly down from 55% last year, but up from 39% in 2018, according to the study, which surveyed 2,800 employees and 2,800 senior managers.
As The Wall Street Journal reports, chief financial officers are learning it can take a long time to fill job openings with candidates with the right experience at the right cost, and in many cases end up increasing the compensation they initially offered, says Steve Saah, executive director for Robert Half’s finance and accounting division.
“It may take them a while to come to the realization they need to pony up,” Saah says.
Saah says he expects the proportion of job candidates asking for higher pay to rise as they leverage the continuing strength of the U.S. job market. The unemployment rate was 3.6% in January, near a 50-year low.
Many executives have also cited rising wages on earnings calls in recent weeks, as companies raise salaries to compete for talent. The war for talent is expected to be one of the biggest issues facing companies this year. Read the full story.