CEO Corner: Washington State’s average annual wage grew by 5% in 2017

By Shannon Kavanaugh, Archbright's CEO

I know you all must be feeling it. Wage growth is on the upswing. The Employment Security Department reported recently that the average wage grew in Washington State by 5% but that earnings overall grew by 7.7% in 2017. This growth represents the largest year over year growth since 2007.

With the unemployment rate sitting around 4.6% (3.6% in Seattle and 6.4% in Spokane) and this trend toward wage increases, there’s going to be (read IS) higher pressure on employers when it comes to compensation! In fact, all 13 major industry groups saw job growth but one (government) in 2017.

Our own 2018 Wage and Compensation Survey showed there does seem to be a variance in what our member companies are doing and what the state is reporting on whole (our 365 reporting members showed a mean of almost 4% growth in 2017, with many reporting little to no growth). This could put you at a greater risk of losing the talent wars that are looming!

So what steps can you take? Do a market pricing assessment of all your jobs and make adjustments now… then plan to do it again in early 2019. Budgeting cycles come due in the next few months, so you will need to move quickly to ensure you are ready for the inevitable.

Go to www.archbright.com to purchase the Archbright Wage & Compensation Survey as you plan for 2019, or call your Account Executive for all the ways we might be able to help! you recruit and retain the talent you need!