Dive Brief:
- Applicants with specific kinds of expertise are able to demand bigger paychecks, with 57% of U.S.-based managers reporting that they are offering higher-than-planned salaries in order to attract new hires, citing specialized skills as the main reason, according to the new 2027 Salary Guide from business consulting firm Robert Half.
- In particular, fluency and expertise with artificial intelligence is behind some of the most notable salary hikes, with 72% of managers increasing pay for relevant AI skills, and 42% offering more for applicants with AI-related expertise than for those with other technical skills, per the report.
- Competition is high for workers with “expertise tied to business-critical priorities,” and employers are rethinking their total rewards strategies to attract those employees.
Dive Insight:
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.