Philly salaries for in-demand jobs are higher than the national average, but behind nearby East Coast cities

The good news: corporate salaries in Philadelphia are higher than the national average.

The bad news: They’re still lower than in other similarly sized East Coast cities.

Philadelphians who work the most in-demand jobs in the talent market right now are paid 18% more than the national average for those positions, according to the 2024 Salary Guide released Tuesday from recruiting firm Robert Half.

That’s considerably better than other Pennsylvania markets, such as Reading and Harrisburg, where those salaries came in about 5% lower than the national average, according to the survey.

But compared to other big cities, Philadelphia’s pay scales are behind, the survey found. “Even though we’re above the national average, when you look at the cities, we’re coming a little bit lower than that,” said Brittany Nisenzon, a regional director for Robert Half.

For those same in-demand roles, the average salaries were about 38% higher than the national average in New York; 33% higher in Boston and Washington, D.C.; and 24% higher than the national average in Chicago.

The difference comes down to retaining young talent in high-paid industries throughout their careers, Nisenzon said.

While Philadelphia has made major progress over the past 20 years in retaining young college grads, Nisenzon suggested more could be done to build opportunities in the tech and start-up community in Philadelphia, and foster long-term careers in the city.

“Something I encourage companies to try to do is create a healthy path for entry level up … into senior level,” Nisenzon said. With that effort, “within the next five to 10 years, we can be highly competitive with those other markets.”

While the job market isn’t quite as frenetic as it was last year, unemployment is low nationally and locally. There are still more job openings than available talent.

About half of employers plan to increase starting salaries in 2024 so they can recruit and retain employees, while nearly half said they plan to add new benefits, Robert Half found. Some perks that have become more common since 2019, Nisenzon said, are company-paid meals and snacks, paid time off for volunteering, and paid parental leave for all parents (not just for the birthing parent).

Looking at Philadelphia specifically, Nisenzon said employers are now mostly seeking candidates who live locally. Only about 10% of Philadelphia companies are open to candidates who don’t live in the area, she said.

To attract local workers, employers will need to pay well and provide clear options for flexibility.

About two-thirds of people surveyed by Robert Half said they plan to ask for a raise before the end of this year, due to concerns around inflation, taking on more responsibility in their job, or feeling underpaid compared to market rates. Nearly a third said they plan to look for a new job if they don’t get a raise.

Still, a majority of workers said they would rather work at a lower-paying job with flexible work arrangements vs. a higher-paying position with strict in-office requirements. This was particularly true among Gen Z respondents (people born between 1997 and 2012) and working parents, the survey found.

In the technology field specifically, Nisenzon said, 89% of workers said they are willing to go to the office, but they want a pay increase if they do so.

Recruiters recommend that employers get ahead of the pay and flexibility conversations, Nisenzon said, by providing information on salary and in-person requirements in a job listing.

More employers are including salary information in job listings, she noted. Some states and cities now require this by law. The survey found that six in 10 hiring managers said listing salary ranges helped them attract qualified candidates and gave them an edge against competitor employers.

With regard to work arrangements, Nisenzon said, the term hybrid can have a wide variety of meanings. She encouraged employers to be up front about the number of days people are expected in the office and to explain what kinds of accommodations are possible.

“Putting that in the job description can make it attractive,” she said. To define it “is helpful for recruiters, but most important for employees.”