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Robert Half (RHI) to Hike Salary of U.S. Professionals

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Global staffing firm, Robert Half International Inc. (RHI - Free Report) has been witnessing rising demand for staffing services owing to an improving U.S. economic scenario as well as a growing labor market. In such a scenario, organizations generally continue to compete fiercely for skilled talent, particularly in the areas of big data, compliance and mobile applications development. Accordingly, they work toward creating more attractive job offers and improving their retention efforts.

In view of the rising demand for skilled professionals, Robert Half revealed that it is expected to increase salaries for U.S. professional occupations by an average of 3.6% in 2017. Among the five fields tracked, the technology sector is projected to see the greatest pay hike, with base salaries rising by an average of 3.8%. Accounting and finance roles are expected to get an average compensation increase of 3.7%. Legal and creative fields may each witness an increase of 3.6% in 2017, while administrative professions might expect a 3.5% increase in salary.

Generally, we have seen that higher compensation is often the driving factor behind job changes. Though there are other reasons too such as growth opportunities, shorter commute or a better designation, a higher pay is often the bone of contention when it comes to switching jobs. Thus, a hike in salary will not only help Robert Half to retain its best and the brightest professionals, but also boost employees’ morale to work more and give their best to the organization.

ROBT HALF INTL Price and Consensus

 

ROBT HALF INTL Price and Consensus | ROBT HALF INTL Quote

Robert Half International is the world's largest specialized provider of temporary and permanent personnel in the fields of accounting and finance. The company witnessed year-over-year earnings growth, driven by solid demand for services provided by skilled professionals. The company’s international operations also improved, particularly backed by higher demand for staffing and consulting services. However, earnings growth was sluggish. In fact, the company’s earnings did not grow in double-digits, a trend witnessed since the past 24 consecutive quarters on a year-over-year basis.

Robert Half’s revenues have increased year over year for the past five years, driven primarily by broad-based and higher demand for its professional staffing and consulting services owing to improved labor markets, low unemployment in numerous professional occupations and improved economic backdrop in many of its non-U.S. markets. We note that the company has been investing heavily in technology staffing over the past few years. Its international operations have also improved in the recent quarters, particularly driven by higher demand for staffing and consulting services.

With an improving economic picture, the company expects to generate accelerated global revenues in the near term. Also, U.S. health care reform and consumer protection regulations are fueling demand for the company’s services.

Robert Half’s subsidiary Protiviti is also one of the key drivers of revenue and operating performance. The company expects to invest in software initiatives and technology infrastructure, both of which are important for growth opportunities in the future.

Robert Half currently has a Zacks Rank #4 (Sell).

Investors interested in the staffing industry can consider better-ranked stocks like Staffing 360 Solutions, Inc. (STAF - Free Report) and Gee Group Inc. (JOB - Free Report) . Another company from the broader consumer staples sector is Ingredion, Inc. (INGR - Free Report) . While Staffing 360 and Ingredion sport a Zacks Rank #1 (Strong Buy), Gee Group holds a Zacks Rank #2 (Buy).

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