November 15, 2019
As we near the end of 2019, the labor market is tight with U.S. unemployment in November at 3.6% and 3.1% for the manufacturing sector. Overall, 2020 merit increase projections from the Bureau of Labor Statistics remain constant at 3.0%, as employers continue to use performance-based incentives to bump up overall salaries for those reaching performance goals and company objectives.
In the 2019 World Manufacturing Forum Report, employers were asked what they were doing to overcome talent shortages. Leading responses included “providing additional training” and “lowering position requirements” whereas “higher salary for candidates” ranked sixth out of eight factors. Employers would rather train employees or lower the position requirements before considering raising the base salary for a position. If you find your current company to be generally a great fit, consider asking for additional training in areas where talent is short such as Process Safety Management or pursuing an MBA to complement an engineering degree.
In the staffing industry, we often see people make career decisions based largely on position titles. This approach can be sub-optimal since moving from one company to another with the same title or even a lesser title can be a great career move. Compare the companies' market capitalization and consider the differences in their manufacturing complexities and other cultural factors. Finally, choosing a position in a city over a rural area can also boost your career by providing a larger networking pool for career growth throughout your life.
In a tight labor market, employees can wield more market power so consider education/training or a new employer that can offer more of what you already enjoy. Trispyrian Resources is available to be your guide to your next career move. For assistance, please contact us at (800) 358-8250.