Cost of living crisis is taking hold
Research from jobs and careers site, Reed.co.uk has shown that 33% of workers have applied for or have considered applying for a new job. In addition, 65% of workers have changed job-seeking priorities in response to the cost-of-living crisis. A salary increase is becoming a common priority for 34% of workers.
The survey, which looked at the opinions of over 2,000, revealed that 22% have said they intend to look for a new job soon and 55% of workers are actively seeking or considering a new one. A further 17% admitted that the increasing cost of living made better work-from-home opportunities more of a priority.
Amongst active jobseekers, the data revealed that 30% of women are more motivated by a salary increase than men (27%). Furthermore, younger workers – between 18-34 – are more likely to consider changing jobs to secure a salary increase than other generations (45% compared to the 29% average).
Fifty percent of workers said that a salary increase is the most meaningful action an employer can take to retain employees, while 47% said that a low salary was the reason they’d want to leave their current employer. Forty percent of workers indicated that they would stay with their current employer if a better salary counter offer were made.
In terms of amounts, the survey showed that employers could retain some workers with moderate increases. For workers aged 55-64 and 65+, most (32% and 38% respectively) agreed that salary increases of less than £1,000 would be sufficient to convince them to stay. For workers aged 18-34 and 35-44, a salary increase of between £2,500 – £4,900 was required by most (33% and 30% respectively) to continue with their current employer.
James Reed, Chairman of Reed.co.uk, commented: “Due to runaway inflation currently at 9.4% and outstripping wage increases across many industries, millions will be on the move from this September onwards to secure a pay bump.
“Although the current economic landscape is challenging, amidst warnings of a looming recession from the Bank of England, UK workers should feel empowered to capitalise on the current labour market which continues to show high volumes of jobs being created.
“However, with inflation potentially rising to 13%, it could increasingly feel like workers are chasing after a galloping horse, with some workers having to take on a second or third job to keep up with the soaring cost-of-living increases. This could lead to a two-speed workforce with workers in some sectors falling behind others.
“It’s a tough situation where very few are benefiting, including employers who are facing a higher turnover of candidates than you’d typically expect in August with over 50% of workers considering a move.
“For employers, a failure to proactively ensure salary packages reflect current inflationary increases will have a significant impact on their business’s ability to attract and retain staff. Understandably, many may not feel in a financial position to deliver significant increases in pay. However, offering desired pay rises costs less than replacing workers and our research shows that the vast majority of candidates (87%) are poised to accept a counter offer from their current employer provided it meets expectations.
“During these challenging times, it’s clear that many workers – particularly those feeling the pinch from the cost-of-living crisis – deserve a pay rise. For most, the best way could be to secure a new job.”