ResumeTemplates.com, the leading platform for free professional resume templates and examples, has published a report examining changes in salary offerings. Based on 1,000 business leaders in the United States across industries 22 per cent of companies are offering lower salaries than they did last year for some positions at their company. The positions most commonly affected include administrative (47 per cent), customer service (44 per cent), information technology (IT)/technology (31 per cent), sales (34 per cent), and finance (27 per cent). Nearly one in 10 companies reported salary reductions of greater than 10 per cent for some positions.
The primary reasons driving lower salary offerings include an expectation of an economic downturn or market uncertainty (62 per cent) and an inability to afford higher salaries (53 per cent). Other factors include perceptions that previous salaries were too high (48 per cent) and reduced marketplace competition (45 per cent).
“Organisations with experienced human resources teams will be familiar with the benchmarking tools available to ensure their organisations are offering appropriate salaries for available positions,” notes ResumeTemplates’ Chief Career Strategist Julia Toothacre. “While every organisation can set whatever salary bands they want, it’s important to remember that inflation is high, and offering salaries that were competitive 20 years ago isn’t going to work today.”
For next year, more than one-third of companies indicate there may be hiring freezes and layoffs. Survey findings also suggest companies are actively engaging in the practice of replacing laid-off workers with lower-cost hires.
