Most US hiring managers are more cautious with hiring plans than in the past two years, according to the annual hiring survey released today by job board operator DHI Group Inc. (NYSE: DHX). While the survey found 56% of hiring managers in the US anticipate more hiring in the first half of 2017 as compared to the second half of 2016, that is down six points from a similar survey conducted in June 2016 and down five points from a survey conducted a year ago.

While the survey was conducted spanning the recent US election and therefore too early for substantive insight related to the election results, the responses do paint a picture of employers being less bullish on hiring in 2017. A significant number, 68%, of hiring managers who focus on recruiting technology professionals anticipate more hiring, however that’s a 10-point drop from November 2015, indicating waning confidence levels.

As employers appear more cautious with hiring in the year ahead, positions are taking longer to fill. Nearly half of hiring managers who recruit across industries state the time to fill open positions has lengthened compared to last year, the highest since the survey began. This is slightly more evident among tech-focused hiring managers who face increased competition as employers across the country increase their tech needs and skilled talent is becoming harder to find.

The inability to find qualified professionals remains the primary reason employers broadly have difficulty filling positions. According to DHI’s index measuring job vacancy duration, it took 28.0 working days to fill open positions in the US in September (the latest data available), up from 27.7 days in August. The record-high since the data became available in 2001 was 29.5 days in April of this year. 

“Finding the right candidates for the right positions continues to be a challenge for America’s hiring managers as demand for highly skilled professionals creates tension and competition among employers,” DHI President and CEO Michael Durney said. “To combat the time a position remains unfilled, recruiters are turning to sourcing and services which speed efficiency. But, professionals remain ultimately in control and are asking for more money during the recruiting process.”

A combination of rising competition, shortage of skilled talent and compensation-savvy professionals adds to the talent tango and is driving wages higher.

Pay expectations are trending upward with 59% of hiring managers — both tech and across a variety of industries — noting salaries for new hires will be higher in 2017. The rise is more pronounced among hiring managers who recruit a variety of professionals, with 12% expecting significantly higher salaries in the current survey versus 8% in November 2015, signaling the need for employers to reassess budgets and ensure compensation and benefit offers are aligned for a competitive employment market.

That doesn’t appear to be happening yet as a majority of recruiters across industries, 55%, say they can’t fill positions due to salary guidelines for the position, up three points from the mid-year survey and eight points from November 2015.

“Companies are missing a big opportunity by not evaluating salary trends and changing expectations for positions,” Durney said. “While some employers fail to stay current with rising salaries, savvy recruiters who keep up with changing market dynamics come out ahead and land top skilled talent.”

The survey included 618 US hiring professionals who recruit for a variety of professionals, and 785 who recruit for technology professionals. It was conducted from Oct. 31 through Nov. 11.