Companies say they’re doling out bigger paychecks to attract candidates

Companies say they’re doling out bigger paychecks to attract candidates

More than half of employers are offering higher-than-planned salaries to applicants with expertise in areas like artificial intelligence, according to a new study. The report highlighted projected salaries, compensation trends and hiring insights across seven sectors. Salary ranges covered base salaries for new hires of all levels of experience, and respondents included more than 2,000 U.S. hiring managers, business leaders and employed workers. Job offers are also more competitive now than they were three years ago, according to 64% of respondents. While the report said that average salaries for new hires were projected to rise 1.9% in 2027, certain in-demand roles could see larger increases. The study found that AI capabilities were becoming an increasingly important factor in salary negotiations, with tech hubs such as San Francisco, Denver and Seattle reporting the highest share of managers who said they were making higher-than-expected compensation offers to new hires. In-demand roles in the tech sector included business intelligence developer, data scientist and cybersecurity engineer.

Other sector jobs in demand include marketing automation specialist, financial analyst and executive assistant. “Compensation expectations are evolving as employers compete for talent with specialized and emerging skills,” Dawn Fay, operational president of Robert Half, said in a statement. “When employers provide clarity around pay and align salaries with current market conditions, they are better positioned to attract talent, retain employees and streamline the hiring process," Fay said. Almost all respondents said they either included salary ranges in job descriptions or planned to. They said that in addition to attracting better applicants, salary transparency improved employee retention, strengthened salary negotiations and cut down on time-to-hire. For employees, compensation was still a major factor when looking for a job. However, many said they also prioritized flexible schedules, commuter benefits, hybrid work, free or subsidized meals and 401(k) matching. Overall, U.S. base salary merit increases are expected to be set at 3.2% for 2027 , with total salary increases set at 3.5%, according to a recent survey from professional services firm Marsh.

At the same time, a recent study from London-based advisory and broking firm WTW found that overall average U.S. salary budgets are expected to increase 3.4% in 2027 , compared to the 3.5% increase seen in 2026. An update to our conference list includes the latest dates and locations organizers have shared. Court orders have shown there are limits to workers’ discrimination claims under the Americans with Disabilities Act. An update to our conference list includes the latest dates and locations organizers have shared. Court orders have shown there are limits to workers’ discrimination claims under the Americans with Disabilities Act.

Sources cited: 📰 HR Dive ↗

⚡ Effects Interpreter

🌍World Economy

  • ▶World markets have a habit of reading between the lines of stories like this.
  • ▶Growth projections drawn up in distant capitals may need a rethink.

🏙️Local Economy

  • ▶Pay packets and rotas nearby might bend with the news.
  • ▶Recruitment agencies locally may notice a shift in demand soon.

🏦Rates & Banks

  • ▶Savings accounts might see their rates nudged only after a broader trend emerges.
  • ▶Your bank is unlikely to act on this alone, but it will be watching.

❤️Health

  • ▶A short walk or a chat with a friend can do wonders when headlines feel heavy.
  • ▶Looking after mental health is worth it when headlines feel heavy.

💷Wealth

  • ▶Redundancy pay, where it applies, is worth understanding in full.
  • ▶It may be wise to review outgoings if jobs are on the line.

🏠Housing

  • ▶Home costs usually respond further down the line, once the bigger picture settles.
  • ▶Buyers and renters might notice only a gentle drift, if anything at all.
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Editorial note: This analysis was produced by the News Effects Interpreter, an AI editorial tool that cross-references 1 independent news sources and contextualises events in terms of their real-world impact on ordinary people. Original reporting is linked above. News Effects does not alter the facts of source reports.