Because the pre-crash levels were inflated and because companies usually could, and did, take advantage of the downturn in the market.
2013 was really the first year where we saw the pendulum swing from an employer driven market back to an employee driven market. What we are left with now today is a lot of people not knowing true levels are today. Some people took pay cuts to get a new job, some hadn’t had a salary increase in 5 years, some didn’t see bonus in 5 years.
If you are feeling confused about what your correct level is today then don’t feel too embarrassed, most people are in the same boat. As the market has started to settle I’ve only just got my head around today’s true market levels.
I can’t use broad generalizations and say salaries are up 10% or 20% across the board, that simply wouldn’t be true to say. Supply and demand still dictates the market. Certain skills are in greater demand than others and therefore companies are naturally willing to pay a higher premium for those skills.
I will say this however, if you negotiated (or were `encouraged` to renegotiate) a package between 2009 and 2012 and it hasn’t been reviewed since then there’s a good chance you are below the true market level today.
Be under no illusion however, the purse strings are still being carefully guarded. Lessons have been learned from pre-2008, there is a lot of caution being exercised towards salaries and overheads in general. It also must be said that many employers are rather conveniently slow to recognize an upward change in levels.
If you’re in doubt, drop us a line and we’ll do our best to set you straight.