Experts predict raise of 3 percent

Employers may base pay on skills, not performance

South Florida managers, professional workers and even hourly employees can expect a salary increase of about 3 percent in 2018, a compensation expert says in an annual outlook.

The pay raises are up slightly from a year ago when they ranged from 2.7 percent to 2.9 percent, according to Willis Towers Watson, a global pay consultancy based in Arlington, Va.

Ninety-three percent of the more than 100 South Florida employers surveyed said they plan to give their workers raises in 2018.

A raise would be a welcome change for some workers in the tricounty region who have found their pay stuck in neutral since the 2007-2009 Great Recession. Florida employers’ expected 3 percent salary increase mirrors national employers, according to the survey.

What’s causing pay to go up? Low unemployment and more job openings. There aren’t enough people to fill the jobs, especially those with special skills in industries including technology and construction, experts say.

“There are a lot of job openings out there,” said PNC Bank’s Florida economist Mekael Teshome. “At some point, firms have to decide, if they want to attract the workers they want or retain their workers, they’re going to have to increase their wages.”

Randy McDermott, South Florida metro manager for staffing business Robert Half International, said he’s seeing the results of a tight labor market. “We’re in a very competitive marketplace,” he said.

In accounting, finance and technology positions, McDermott said he expects wage increases of 5 percent to 10 percent in 2018.

Employers are basing pay increases more on skills they need than on annual or overall performance, according to Laura Sejen, managing director of Willis Towers Watson in New York.

“Does this employee have skills and capabilities that will contribute to the success of the business? Give those employees a bigger increase than anybody else — that’s something more and more companies are doing,” Sejen said.

Top-rated workers might receive as much

as a 4.8 percent hike in 2018, while aboveaverage performers might receive 3.6 percent and average performers 2.6 percent, according to Willis Towers Watson.

However, before knocking on the boss’ door to ask for a raise, workers “need to be able to articulate the contributions they’ve made and contributions they will make. They need to talk about how their skills and competencies have grown and will grow,” Sejen said.

At the same time, people who are looking for jobs and have needed skills are in a better position to be choosy.

McDermott said employers posting ads are getting fewer resumes. With lower unemployment, there is less talent available to fill job openings. “We used to place an ad and get 40 to 50 resumes. We’re not getting as much response,” he said.

As a result, top candidates for jobs are getting two or three offers and leveraging that into the position they want most. “They almost get a mini-war going on,” McDermott said.