Southland Starting Salaries Climbing as Economy Appears to be Slowing.

Business Editors

IRVINE, Calif.--(BUSINESS WIRE)--Feb. 9, 2001

According to the 16th Annual Employment Survey Commissioned by Thomas

Staffing, Starting Salaries Will Increase Substantially in 2001

Workers With Competitive Skills Continue to be in High Demand

Employers

Southern California administrative and support staff employees can expect to receive a starting salary that will increase from 11% to almost 19% in 2001, according to statistics from the 16th Annual Employment Survey commissioned by Thomas Staffing, a leading staffing services company (see Graph No. 1).

Douglas M. Slack, president of Thomas Staffing, after analyzing the survey results, commented: "The competition to attract qualified and multi-skilled office professionals is pushing starting salaries upwards.

"All polled job categories project an increase in starting salaries employers will offer to incoming office workers for the first half of 2001," said Slack.

"Although the economy is somewhat uncertain, the survey signifies increased compensation for well-qualified office employees. This may add to the employer's challenge in controlling operating expenses and put more pressure on improving productivity."

In further commenting on the strong starting salary outlook, Slack added: "in today's economy, the labor market remains tight for skilled office professionals. Over the past few years, employers have worked hard to recruit and retain skilled employees.

"Employers are hesitant to cut back since they know the time and resources that have gone into building their staff, plus the survey indicates there is a growing need for skilled office professionals."

Customer service representatives can expect to earn the largest percentage increase among incoming office workers, projected to be 18.8% over last year, according to the survey. Executive secretaries and administrative assistants can expect the largest dollar increase for 2001, at $4,800 and $4,500 respectively.

For the first time, the survey also included the average starting salaries for three new job categories: Human Resource Manager, Human Resource Assistant and Marketing Coordinator/Assistant (See Graph No. 2).

Multi-Skilled Workers To Enjoy Compensation Rewards

Office professionals possessing the education, experience and skills employers require are being rewarded with higher starting salaries. "Generally speaking, job categories such as Administrative Assistant, Accounting Clerk, Executive Assistant, Receptionist, and General Clerk all have enhanced responsibilities.

"These positions now support multiple people and an array of functions, which is one reason higher salaries are merited," Slack noted. "Technology has clearly helped improve employee productivity. Employers, for the most part, have so far been able to absorb higher salary costs and avoid a negative effect on profit margins."

New-Hire Salaries May Create Pressure Point

Higher salaries for new employees could present a dilemma or pressure point for employers with their existing employees. "New-hires are being offered salaries similar to and sometimes more than those of existing employees.

"To meet the challenge of any perceived inequity, maintain the integrity of their compensation programs and to combat the potential of existing employees looking elsewhere for employment, forward-thinking employers are offering comprehensive compensation and benefit packages, and nurturing a positive work environment to maintain employee moral and loyalty," Slack noted.

Variety of Resources Used To Find Candidates

Southland companies have been utilizing many different resources to fill full-time positions. With an extremely competitive job market, 27% of the companies surveyed have an employee who handles recruitment to fill openings (See Graph No. 3). Though 54% of companies still use the traditional method of classified advertising, the Internet has quickly become a viable source for employers looking to fill jobs.

"It is interesting to note that 25% of companies looking to fill full-time positions are using the Internet. Employers are turning to unique methods to speed up the search for qualified, highly skilled employees in what continues to be a seller's job market.

"In addition, 24% of employers are also using temporary help from staffing companies to fill full-time positions," Slack continued. "This approach makes it easier for employers with openings and office professionals to find each other.

"After a mutually successful period of time, the office professional is offered a full-time position and the employer has a skilled employee they may not have otherwise recruited."

Conducted annually by an outside market research firm, the 16th Annual Employment Survey determines market trends and future hiring expectations in Southern California.

This year's survey, completed by Market Research Associates (MRA), interviewed human resource executives from 850 randomly selected companies (with a minimum of $5 million in gross sales, and employing at least 25 employees) in Los Angeles, Orange, San Diego, Riverside, and San Bernardino Counties. MRA gathered the date between Sept. 8, 2000 and Nov. 16, 2000.

Graphs can be found at the Thomas Staffing Web site: http://www.thomas-staffing.com/survey01

Thomas Staffing is a Personnel Group of America Co. (NYSE:PGA), a nationwide provider of information technology consulting and custom software development services; high-end clerical, accounting and other specialty professional staffing services; and desktop publishing and computer graphics services.

The company is based in Charlotte, N.C. and operates 144 offices in strategic markets throughout the United States. The company employs more than 80,000 temporary staffing associates and IT consultants and serves more than 18,000 customers. URL: http://www.pga-inc.com.