The cost of talent in the Americas is, at least in part, a function of the salary expectations of the employees. The better you understand these expectations, the better negotiator you can be when hiring. Knowledge of the salary expectations of employees can help your employer branding; you don’t want to be cheap nor someone who overpays. The Universum talent survey investigated salary expectation trends in the Americas. Below are a few of their most important findings.
The United States and Canada have the highest salary demands in the Americas in business and engineering fields. In both, the U.S. comes in first, demanding $ 49 469 a year for business and $ 59 562 a year for engineering. Canada comes in second for both, demanding $38,802 per year for business and $46,247 for engineers. This makes sense since the U.S. and Canada are the two countries with the highest per capita GDP in the Americas.
Colombia and Peru have the lowest per capita GDP in the Americas, so it should come as no surprise that their salary demands are the lowest. Colombia business students demand $10,931 a year while their engineers demand $12,324; Peruvian business students demand $ 11 798 while the engineers demand $ 14,536. This data shows that, regardless of where you are in the Americas, salary expectations are in line with the nation’s GDP.
The Gender Gap is one of the most important issues the modern workplace faces, but one that sometimes has confusing data. In the Americas, women earn anywhere between 4 to 14 percent less than their male counterparts. What is interesting is that, in general, the gender gap is less in Engineering than it is in Business, which may run counter to many public perceptions. According to the Universum talent survey, the country with the largest average gender gap for a starting salary was Argentina at 13 percent and the smallest was Brazil at 5 percent. However, Brazil has one of the highest gender pay gaps in the Americas for higher paid positions, so deciphering the causes and effects of the gender gap in the Americas can be hard to determine.
What we can say is that the gender gap has caused a brain drain and a loss of productivity in countries where the gap is high. A recent report about the gender gap suggests that Latin American countries have lost an estimated 15 percent in potential GDP growth due to women either not entering the workforce or going somewhere else.
While the statistics may be discouraging, they also offer an opportunity for your business. By going into Latin American countries and offering competitive wages to female business students and engineers, you can gain control of an incredibly untapped resource and positively grow your employer branding. If this sounds like a strategy for you, contact Universum. Universum is an employer branding service provider that can help you build the best possible workforce you can.