Executive search firm Salveson Stetson Group says the senior executives it placed last year received an average pay hike of nearly 16%, and, for the first, out-of-work candidates got offers matching those given to employed executives.
Manufacturers, however, made offers well above the Salveson Stetson average. Manufacturing executives got a 25% pay hike. Human resource executives also did well, seeing an increase of 20%.
Broad implications can’t be drawn from the firm’s data since only 20 executives participated in its annual survey. But it does provide texture to other reports of a resurgence in manufacturing and growing demand for HR professionals.
“The premium that companies are placing on hiring top quality executives to run human resources reflects the importance that these organizations are putting on improving their overall talent practices,” said Sally Stetson, co-founding principal at Salveson Stetson Group and leader of its human resources practice.
Manufacturers, likewise, recognize that, “Managing a truly global business is a skill-set that is in high demand but short supply. The fight among global manufacturers for executives with these experiences can be seen by the surge in pay, says John Salveson, co-founding principal.
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Salveson Stetson Group has been tracking executive compensation trends since 2006 reporting:
- Executives who switched jobs before the recession – from 2006 to 2007 – received an average compensation increase of nearly 25%.
- The average compensation increase offered to new executive hires during the height of the recession – 2008 to 2009 – dropped to 11%.
- Post-recession compensation packages for executives who changed jobs between 2010 and 2014 recovered to an average of over 16%, but are still lower than pre-recession levels.
Salveson Stetson Group did not formally track compensation increases prior to 2006, but says increases in the early 2000s were in the 20-25% range.