For market analysis on executive positions Directors and up, please reach out toexecutivesearch@hrcap.com. For any questions, please contacthrm@hrcap.com.Employment is becoming more competitive each year, with candidates expecting more for the skills they possess – sometimes more than what they are worth. The average salary in the United States has been steadily increasing each year. Salary data show that more and more candidates are looking for higher compensation with lucrative benefits.
By assessing data collected from market research, executive recruiting, and organization design consulting sessions, HRCap can visually conceptualize the ever changing scope of “compensation,” especially for Korean-American companies in the United States. HRCap revisited our annual study of “salary trends” to assess market dynamics and candidate expectations.
According to the salary data HRCap has collected in 2019, Korean-American companies have increased the average salary of employees to stay competitive with the national market. There was an average increase of 5.4% in 2019 from the previous year. The following excerpts show salary trends specific to entry to manager level roles at our client companies from 2017 through 2020.
Based on HRCap’s assessment of the collected salary data, we project an overall salary increase of 4.64% for Managers, 4.04% for Assistant Managers, and 6.45% for Entry or Associates in the year 2020.
Many of our clients have began to revisit salary pay grades and bonus offerings to retain and reward their top talent. We have also seen companies stay competitive by expanding their benefit offerings, a key factor in total compensation. Even if the base salary is lower than the National average, the additional benefit offered can become a positive complement to the presented salary.
Exhibit C: Percentage of Korean-American Companies Benefit Offerings
Graph and Chart Created by HRCap, Inc.
Source: HRCap, Inc.
The above data reveal that most Korean-American companies offer medical, dental, and/or vision as a standard benefit. Personal time off (PTO) and sick leave are standard across most industries as well; average 10 days of PTO and 5 days of sick leave. Additional benefits including 401K, Life Insurance, and Relocation Support are not as standard, but have been widely requested by many candidates. Many companies offer competitive 3 – 5% 401K matching, significant lump sum sign-on bonus, or full relocation programs to attract top talent from across the country.
Special benefits are also provided to attract these talents. Some of these benefits include flexible hours, free meals, corporate discounts, mobile phone benefits, health club reimbursement, commute/travel reimbursement, and on site family care. Although companies are not legally obligated to provide these benefits, they can become the deciding factor for a candidate when choosing between two competitive companies. Even with the annual increase in salary for Korean-American companies, the overall average still falls behind the national average. The data below, mainly pulled from the U.S. Bureau of Labor Statistics, highlights competitiveness between industries, with Software & IT Services being the most competitive.
With digital transformation trending throughout the job market, more demand is seen for positions with data related skills, such as software developers, engineers, data scientists, and data analysts. Hence, industries highly invested in data, such as Software & IT Services, are dominating the competitive market space given the highest demand for these hot skills.
Companies need to properly assess the market and revisit their compensation and benefit programs to ensure they are market competitive but within the proper budget. They must realize the rising value of top employees and make strategic changes accordingly.
As the leading headhunting firm for Korean-American companies, HRCap collects data uniquely tailored to the Korean-American market. Using this data, we will continue to provide the most realistic reflection of the labor market, to best service our clients in their hiring needs.
For market analysis on executive positions Directors and up, please reach out toexecutivesearch@hrcap.com. For any questions, please contacthrm@hrcap.com.
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