Get access to the exclusive HR Resources you need to succeed in 2018!
SHRM board member David Windley discusses how unconscious bias can derail workplace diversity efforts.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Build competencies, establish credibility and advance your career—while earning PDCs—at SHRM Seminars in 12 cities across the U.S. this spring.
#SHRM18 will expand your perspective – on your organization, on your career, and on the way you approach HR. Join us in Chicago June 17-20, 2018
During the Great Recession, senior executives who switched jobs got smaller pay bumps
Senior executives who changed jobs last year received double-digit compensation increases, as they increased their cash compensation by 21.1 percent, on average, over what they earned at their previous organizations.
This increase applied to every industry and every functional area, according to executive search firm Salveson Stetson Group, which analyzed compensation data from a representative sample of the firm's senior executive placements among a variety of organizations in 2016. The compensation packages analyzed included base salary and incentive pay awarded last year.
The average compensation increase for a senior-level candidate accepting a new job in 2016 was up slightly from the 18.44 percent increase notched for 2015.
salary increase budgets for corporate officers/executives who stayed put in 2016 averaged 3 percent, the same as for other employee categories and no different from the salary increase forecast for 2017, according to WorldatWork, an association of total rewards professionals. These officers/executives also reaped variable pay, such as bonuses, that accounted for 34.5 percent of their overall cash compensation in 2016;
that figure is expected to rise to 35.0 percent in 2017, according to the group's forecast.
The higher rewards offered to job-changing executives reflect the continued tightening of the U.S. labor market as the unemployment rates last year held steadily below 5 percent, said Donna DeHart, vice president at Philadelphia-based Salveson Stetson Group. "In an environment approaching full employment, it would be surprising if we didn't see this type of upward pressure on executive compensation," she said.
[SHRM members-only toolkit:
Designing Executive Compensation Plans]
"We are now seeing the same type of free-for-all for talent that we experienced in the years immediately prior to the Great Recession," said John Salveson, co-founder and principal at Salveson Stetson Group. "U.S. corporations must not only pay employees competitively to retain them, but must offer a work culture and career development opportunities that outweigh the opportunity to receive better compensation packages elsewhere."
Among other research findings highlighted by Salveson's firm:
Related SHRM Online Article:
Top Executives to Get Performance Bonuses Despite ‘Tepid Growth’, SHRM Online Compensation, January 2017
Was this article useful? SHRM offers thousands of tools, templates and other exclusive member benefits, including compliance updates, sample policies, HR expert advice, education discounts, a growing online member community and much more.
Join/Renew Now and let SHRM help you work smarter.
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Your session has expired. Please log in again before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
SHRM Member Discounts Program
SHRM’s HR Vendor Directory contains over 3,200 companies