Employment Spot

Who Really Has the Upper Hand? Employers or Job Seekers?

Workers looking for new jobs in the next 12 months may have more bargaining power than they realize. A new Labor Day report found employers are experiencing difficulty recruiting quality candidates and are willing to up the ante on job offers.

Looking back at the late 1990s, the U.S. job market was employee-driven. An abundance of job opportunities and lack in readily available talent fueled a heated competition amongst employers to secure new recruits. The situation changed with the emergence of a debilitating recession that

left budgets and staffs leaner, employers more selective in candidate choices and workers struggling to stand out in a stack of resumes. Now, the dynamics are shifting once again as the economy grows stronger, job creation persists and power becomes more evenly distributed amongst employers and job seekers.

The EDGE Report (Employment Dynamics and Growth Expectations) commissioned by Robert Half International and CareerBuilder.com explores hiring and compensation trends based on a nationwide survey of hiring managers and workers. According to the survey:

• 42 percent of hiring managers report it was difficult to find qualified candidates one year ago.
• 32 percent say it?s even more challenging today.
• The vast majority — 86 percent — think it will be equally or more challenging to find qualified candidates one year from now.

The survey indicates that employers remain cautious in their employee selection, closely scrutinizing qualifications and productivity potential of each applicant as they expand their staffs in the wake of a downturn. These employers are voicing concern over the ability to find top performers with nearly half pointing to an overall shortage of workers with the desired skill level, experience and fit within their corporate culture. This is likely to become more pronounced in the not-so-distant future as the Baby Boomer generation retires and smaller generations of replacement workers fall short of meeting labor quotas.

What does this mean for the workforce? It means qualified workers in a variety of industries and fields are in demand and are in a better position to negotiate their entry into a new company. And while a degree of skepticism remains with 42 percent of workers stating the job market is more challenging today than one year ago, one-in-four workers state they are actively pursuing new employment opportunities. Forty-seven percent say they will leave their jobs within the next three years.

Those looking for new jobs may garner a bigger paycheck with perspectives on compensation evolving with the market. Half of hiring managers said they were not very or not at all willing to negotiate compensation levels for offers one year ago. However, in the last 12 months, compensation packages have increased, according to 28 percent of hiring managers. Thirty-three percent anticipate offering higher salary and benefits packages in the next 12 months.

Workers are taking notice. While 39 percent of workers said they were not apt to ask for a better job offer one year ago, nearly half expect to have more negotiating power going forward and plan to push for a more generous starting salary in the next 12 months.

Since the starting salary determines raises and bonuses, negotiating an extra $1,000 to $5,000 when hired could earn one considerably more over the next decade. Workers who are looking for new opportunities should keep the following tips in mind:

Know your value.
Research salary ranges for those working in your industry, occupation and location. Check out online salary calculators, industry Web sites and the U.S. Bureau of Labor Statistics to find specific salary information.

Don?t talk money too soon.
Wait to be offered the job before you discuss your desired pay. If you’re asked for salary requirements on a job application, write "based on job responsibilities."

Turn the table.
If an employer asks you directly about your salary requirements, turn the question around and ask what salary range the company typically offers someone with your job type, experience and expertise. Come prepared with specific examples of how you have contributed to the success of previous employers to showcase your worth.

Consider the whole package.
If the employer is not able to offer a higher salary, there may be room to negotiate other perks like a flexible schedule, extra vacation days, ongoing training, etc. Also, remember there is more to a job than money. Take into consideration experience gained on the job, career advancement opportunities, work/life balance and other important factors to help determine the true value of the offer.

Click on the following link to view The EDGE Report in its entirety: http://www.careerbuilder.com/share/aboutus/pr_main.aspx

About the Survey The survey was conducted from August 1 to August 8, 2005. Methodology used to collect survey responses totaling more than 1,450 workers for this study involved selecting a random sample of comScore Networks panel members. These web panel members were approached via an e-mail invitation, which asked them to participate in a short online survey. The results of this survey are statistically accurate to within +/- 2.57 percentage points (19 times out of 20). Note: This sample included more than 600 hiring managers. The results for the hiring managers are statistically accurate to within +/- 4.0 percentage points (19 times out of 20).

By Matt Ferguson, CEO, CareerBuilder.com

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