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LINE: Hiring Pace Pressures Flat New-Hire Salary Structures

Society for Human Resource Management (07/31/14) Theresa Minton-Eversole

The Society for Human Resource Management’s Leading Indicators of National Employment survey of 500 manufacturers and 500 service-sector companies for August shows that 50.2% of manufacturers and 35.8% of service-sector companies plan to add jobs next month. A net 16.3% of manufacturers and 17.6% of service-sector companies reported increases in exempt vacancies this month, down 2.6 points and up 8.8 points, respectively, from July 2013. A net 24.0% of manufacturers and a net 22.0% of service-sector companies reported increases in nonexempt vacancies, up 4.6 points and 5.7 points, respectively.

Recruiting difficulty was reported by a net 25.0% of manufacturers, up nearly five points on a year-to-year basis, and a net 20.0% of service-sector companies, up more than two points. New-hire compensation was increased by a net 9.0% of manufacturers and a net 12.0% of service-sector companies, up nearly three points and four points, respectively.