Average UK wage growth of 1.8 percent masks over 10 percent pay rises for some qualified, professional and skilled workers; 60 percent of employers plan pay increases in the next 12 months; war for talent intensifies as 70 percent of employers plan to increase headcount and 80 percent expect skills shortages will be a challenge and 61 percent of employees anticipate they will move jobs in the next 12 months.
According to an analysis of job placements made by the specialist recruitment company Hays, over the past year salaries for some professionals have risen by over 10 percent. Some of the greatest salary increases have been in construction, IT and procurement, with a number of specific roles in the construction sector and IT security specialists enjoying salary increases over ten percent. Counter offers are becoming prevalent in all professions as employers compete for the best talent. The survey of over 10,000 employers and employees indicated that employers are confident their business activity will increase over the next 12 months and this will result in greater hiring, with 70 percent of employers planning to increase headcount over the next 12 months. However, 80 percent of employers are already concerned that they will encounter a shortage of suitable candidates.
Not only is confidence returning to businesses, we are also seeing that confidence has also significantly increased amongst jobseekers, with 61 percent anticipating that they will move jobs in the next year and 38 percent of those considering a move within the next 6 months. With 57 percent dissatisfied with their pay and almost half (49 percent ) stating that there isn’t scope for career progression in their role, the propensity to find a new job is already high and likely to increase further. Nigel Heap, Managing Director of Hays UK & Ireland, says: “Although salary increases aren’t yet widespread, there are definite pockets of very significant rises, which have been fuelled by skill shortages. To date the greatest salary increases have been highest in sectors suffering from skill shortages where there simply aren’t enough people to fill the gaps. IT, finance, engineering and construction are all prime areas where jobseekers often have the pick of two or three jobs, they get snapped up quickly by employers and they often receive a counter offer from their current employer, which can push their salary up even further.
“Given that businesses are now more confident about the year ahead and they have plans to take on more staff we expect to see this salary growth to take a greater hold by the middle of next year. Some employees have already spotted they can earn more and decided to make a career move. Others will follow suit over the next 12 months and the situation could soon reach crisis point for employers fighting for the talent they need. Employees rarely move for salary alone but it is always an important consideration and employers need to look at what they can offer in order to attract and retain the best employees.”
To access Hays UK Salary and Recruiting Trends 2015 visit –
