The inadequate supply of qualified and skilled talent is the second-biggest threat to US companies’ ability to meet revenue or business performance targets, second only to “increased competitive pressures,” according to the Randstad US Workplace Trends report. Meanwhile, increasing turnover rates are exacerbating the challenge with 41% of companies indicating their turnover rate increased in the last year.

Sixty-seven percent of decision-makers said they are more concerned about turnover at their organizations now than they were 12 months ago, with survey participants naming “talent being recruited by competitors” as the top reason behind their turnover. Additionally, 70% report their employees’ decisions to leave are primarily due to receiving a better offer elsewhere.

The survey also found 75% of companies surveyed agreed it takes more time this year than last year to find the right talent to fill positions, with the average time to hire a non-executive candidate exceeding two months. HR decision-makers report the average time to fill a non-executive position is 2.6 months and five months for leadership or executive talent. On average, companies report they are currently 13% understaffed, according to the Randstad study.

“Often the challenge for hiring executives isn’t the quantity of available candidates, instead it’s the increasing difficulty in finding talent that is qualified, with the right skills and cultural fit for the position,” said Jim Link, CHRO of Randstad North America. “In fact, our study found that three-quarters of HR decision-makers agree that compared to last year, it is taking more time to find the right talent to fill positions.”

Despite signs that companies may need to increase salaries to recruit and retain top talent, most have kept their wages the same. Only one-third of companies have increased their salaries in the last 12 months, while 60% have kept them the same as they were 12 months ago.

Despite little upward movement in salaries, companies acknowledge that wage increases can greatly improve turnover. Respondents named “salary increases” as the most effective program at decreasing turnover rates, followed by opportunities for advancement and bonuses.

“The reality is inflation-adjusted wages for typical workers have barely budged in the past five years,” Link said. “The lack of wage increases plaguing the country’s labor market has allowed companies to contain costs and regain capital, however the honeymoon appears to be over. According to our survey findings, the increasing turnover rates and recruiting difficulties among companies can be directly attributed to the absence of wage growth.”

The report includes findings from a Research Now survey conducted from November to December 2015. The survey included 2,004 hiring decision makers working in a variety of sectors.