Despite the uncertain economic outlook for the first quarter of 2021, businesses will need to increase salaries by up to 3.5 percent for high-demand roles in order to remain competitive in the race for top talent, according to a new report by Randstad US. With online orders expected to reach almost $477 billion by 2024, demand for jobs in industries like manufacturing and logistics have risen during the pandemic, and employers will need to adjust their compensation and benefits plans in 2021 to attract and retain employees.
Data from the study suggests that some of the largest salary increases will occur for roles like warehouse and logistics managers in response to a rise in e-commerce activity. Salaries for warehouse managers, for example, need to increase 3.5 percent — to as much as $43.21 an hour — to remain competitive. Logistics managers will need an increase of up to 3.5 percent, to $45.95 per hour.
The report also anticipates salary increases for assemblers as the U.S. factory activity hits its highest level in nearly 2.5 years. For example, the report suggests that businesses will need to increase salaries by over 2.4 percent for assembly line foremen, to as much as $32.37/hour.
“Despite labor market challenges associated with the pandemic, our data shows that many employers across a number of industries are still in desperate need of workers,” said Karen Fichuk, CEO of Randstad North America. “That demand is driving an uptick in compensation and benefits for these roles, and employers will need to meet these expectations to secure talent in a tightening labor market.”
The growth in salaries is good news for job seekers hoping to switch careers amid the pandemic, especially as many companies have placed an emphasis on skilling initiatives. However, it also means that employers will likely compete for key new hires across a number of industries in 2021.