Keeping up to date with compensation trends is no easy feat. And if you’re seeking to fill positions in multiple markets, it’s an even bigger challenge. Cost of living differences mean that a salary that seems like a fortune in one city is peanuts in another. On top of that, market demand can drive up salaries for certain positions.
To help employers navigate the challenges of keeping up with compensation trends, Glassdoor has launched Local Pay Reports for 5 U.S. cities, plus a national report. These monthly reports reveal the estimated median base pay and growth rates for over 60 specific job titles in nearly 40 industries and across more than 15 job categories including education, technology, retail and more.
“Government data lags behind the economy, and that’s a problem when trying to understand what is going on with wages at a local level, right now,” says Dr. Andrew Chamberlain, Glassdoor’s Chief Economist. Wage data from the Bureau of Labor Statistics is only updated once per year and contains occupational groups that are difficult to understand. Because of the rapidly changing employment marketplace, employers need up-to-the-minute information to make pay decisions as they hire. Here are some highlights from the October 2016 report:
Base pay is on the rise
Median base pay in the U.S. was up 2.8% since last October to $51,404. Employers should evaluate and adjust salary bands to keep pace at least once a year, if not every six months or even quarterly.
San Francisco, Los Angeles and New York pay the highest
Of the five cities covered, San Francisco had the highest year-over-year (YOY) median base pay increase of 4.2% to $65,927. Pay in New York and Los Angeles increased 3.9% in the past year, while Chicago was right at the average of 2.8%. Houston wages grew more slowly at 1.6% from October 2015 to October 2016.
Employers seeking to fill jobs in the top markets can examine the base pay by position in the individual reports: San Francisco, New York, Los Angeles, Chicago and Houston. Those in other cities can compare to the national average in the U.S. report.
Medical is highly competitive
Salaries in the medical fields showed some of the highest increases since last October. U.S. average salaries for medical assistants were up 6.3% YOY, followed by pharmacy technicians, at 4.4%, and registered nurses at 3.4%.
In San Francisco, pay for registered nurses increased 4.2% to $116,715 per year. While a 4.2% increase may sound small, at that salary it’s nearly $5,000 per year difference in pay. Candidates in competitive markets will take care to negotiate the best salaries they can, and employers need to be prepared
Employees are more empowered with information than ever before
The data source for the Glassdoor local pay reports is our newly released Know Your Worth™ product, which allows employees and candidates to research estimated pay at specific companies for specific roles. Because of the increasing transparency around salary, employers will benefit from being prepared for salary conversations. Download our Guide to Salary Conversations today to help you get started.