Finance sector raising salaries to recruit talent, Marlborough firm’s survey shows
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DALBAR's headquarters in Marlborough
Nearly half of the nation’s leading financial service providers have increased their base salary to attract more talent, according to a study published Tuesday by Marlborough market research firm DALBAR, Inc.
DALBAR said it decided to conduct the survey on staffing and recruitment after a record 4.4 million Americans quit their jobs in September in what has become known as the Great Resignation.
The overarching increases in salaries for incoming employees can create issues when new hires are earning more than tenured staff, DALBAR said in its press release. Firms have approached this potential problem in varying ways, such as by using a signing bonus.
More than 82% of respondents reported higher attrition in 2021 than in previous years, with 53% reporting a dramatic increase. According to the survey, firms are not only seeing a mass resignation from tenured staff, but from brand new hires who have just finished or are still in the process of hiring, which has prompted some companies to try to shorten the hiring process.
Recruitment is a rapidly worsening challenge, respondents said, with roughly 65% reporting a significant increase in difficulty of recruiting, up from 40% in June.
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