Tag: salaries

75% of employees feel salaries should increase in line with inflation

A recent study by Insight Global, a staffing firm, has revealed that 66% of American workers are concerned they will need to look for a higher paying job in order to keep up with inflation.

The survey took place in March and included 1,005 US workers who are employed full time.

The rise of inflation is also prompting some workers to ask their bosses for flexibility to work from home to save on fuel costs. The survey found that 26% of workers who said they are seriously considering looking for a new job also plan to ask that they be allowed to work from home with 24% of those already working remotely planning to continue doing so most or all of the time until gas prices go down.

Overall, 75% of workers believe employers should increase pay during economic inflation.

Bert Bean, CEO at Insight Global commented: “Leaders need to get ahead of this curve before they see some of their greatest talent leave to explore other career opportunities. The simplest way to ensure your employees are content in their current roles is to ask them. Find out what they need — is it a raise, the ability to work from home or are they feeling disconnected?”

Other findings in the survey included:

  • 56% of American workers feel there are many job openings, but few job opportunities offering pay that can keep up with the rising cost of living.
  • 61% of workers who say they are seriously considering looking for a new job feel there are many job openings, but few job opportunities offering pay that can keep up with the rising cost of living.

Flexible working remains key in navigating the skills shortage crisis as employees will continue to look for roles that offer flexible and support during turbulent economic times.

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Starting salaries show a record rise

According to the latest KPMG and REC, UK Report on Jobs survey, candidate shortages have slowed down hiring in both permanent and temporary recruitment. Even though expansions are high based on previous records, the increase rates hit 11- and 12-month lows, respectively.

The report, compiled by S&P Global, is based on responses to questionnaires from around 400 UK recruitment and employee consultancies.

The survey found that overall staff supply had the steepest drop in four months. Those surveyed attributed the candidate shortages to the low unemployment rate and uncertainty related to the pandemic and the war in Ukraine. Other reasons included fewer EU workers and robust demand for staff.

The candidate shortage has led to significant increases in starting salaries – the salaries for new permanent employees rose at the quickest rate in 24 and a half years. In addition, the average wages for temporary workers also increased at the fastest pace in three months.

Although all UK regions showed increases, there were variations in the various English regions. The Midlands showed the steepest increase in permanent placements, while the lowest increase was in the South of England.

Further variations were noted between the private and public sectors, with the largest expansion in demand being in the private sector.

The IT and computing industry continues to show the steepest increase in demand. Conversely, the softest increase was in the retail sector.

Neil Carberry, Chief Executive of the REC, commented: “We can clearly see that labour and skills shortages are driving inflation in these latest figures. Starting salaries for permanent staff are growing at a new record pace, partially due to demand for staff accelerating and partially as firms increase pay for all staff in the face of rising prices. Record COVID infection levels are also pushing up demand for temporary workers, particularly in blue collar and hospitality sectors, underpinning the ability of temps to seek higher rates.

“However, the overall number of placements being made is starting to stabilise. This is no surprise after a period of historically high growth, and in the face of more economic uncertainty. Even so, the jobs market is very tight. Businesses will need to broaden their searches and be creative in making their offer to candidates more attractive, in consultation with recruitment experts. But government can help by incentivising investment in skills and people during the inflation crisis.”

Claire Warnes, Head of Education, Skills and Productivity at KPMG UK, said: “There’s no end in sight to the deep-seated workforce challenges facing the UK economy. Once again this month, job vacancies are increasing while there are simply not enough candidates in all sectors to fill them. With fewer EU workers, the ongoing effects of the pandemic, the economic impacts of the war in Ukraine and cost of living pressures, many employers will continue to struggle to hire the talent and access the skills they need. With unemployment staying low, there are many great opportunities for job-seekers to join or rejoin the workforce in all sectors.”

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Confidence in the market at a three-year high

According to the Hays Emiratisation Salary Guide 2022, UAE nationals are feeling optimistic about their salary prospects this year with the majority expecting their pay to increase over the next 12 months.

In the survey, respondents were asked what they expected to happen to their salary this year with 50% of Emiratis saying they anticipated an increase – up from 43% who said the same last year while 48% anticipate their salary to remain the same as in 2021. A mere 2% said they expected a decrease.

Grace Eldridge, Business Manager of Hays Emiratisation division commented: “This is the first time since running our annual salary survey that we have seen expectations for salary increases outweigh those expecting their salary to remain the same year-on-year within the Emirati community.”

“While professionals’ expectations are always slightly inflated above actual market trends, we do think these expectations are relatively realistic. Confidence in the market is at a three-year high, with business activity generally above and beyond pre-pandemic levels in the UAE. As a result, we expect a higher number of salary increases to be awarded this year than the past two years,” adds Grace.

Results from the report found that 74% of employers in the UAE plan to increase salaries in 2022, compared to 36% who did in 2021.

How much are salaries likely to increase?

The report found that 32% of Emiratis received a pay increase last year, which was lower than the 44% of expats who were also given pay increases. However, the average uplift in pay was higher for the Emirati community, who were mostly awarded an increase of between 5 and 10%, compared with the expat community, where the most common was an uplift of less than 5%.

According to Hays, in 2022, of those UAE nationals who expect a pay rise, the majority will again anticipate an increase of between 5 and 10%, while the majority of employers are planning to increase salaries by less than 5%.

Grace added: “When we refer to pay rises and trends, it’s important to note that these are not typically awarded on a company-wide basis. Instead, as our report shows, pay rises are more commonly offered on an individual basis as a result of a professional either ‘starting a new job with a new company’ or an ‘individual performance related pay increase’ and we expect the same again this year.”

“Our advice to professionals who believe they are deserved of a pay rise, is to be prepared to ask for one. They must manage their negotiation formally and sensibly; in light of the value they bring to the organisation. Those who sit and wait from a pay rise may be disappointed,” concluded Grace.

 

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Companies in the creative sector looking for talent for growth

Data compiled by creative, digital and marketing recruitment specialists, Aquent, has shown that UK salaries are surging as the economy comes back to life.

The collated data from placements made in the UK during 2021 indicate that companies have engaged in the hiring ‘rush’ that has continued to gain momentum since spring and those working in creative industries have a glimpse into next year’s job market in Aquent’s 2022 salary guide.

The data from this year’s salaries paints a very different picture to the job market in 2020 where stagnating wages and impending redundancies were seen in the advertising and creative industries. According to the report, the recent ‘boom’ in wages is down to a number of factors, including a skills shortage which has resulted in midweight roles pushing for higher salaries.

Companies that have survived the pandemic are searching for talent for further growth; but in the current market, candidates often have multiple job offers and ask for higher salaries to sweeten the deal. Aquent’s data found that in order to make a move to a new role, 42% of talent wanted a 16% to 30% salary increase before tendering their resignation.

UX and CX continue to call the shots

Much like 202, those working in UX and CX design still hold the ‘golden ticket’ in terms of the most sought-after roles. Data from Aquent found that only 20% of UX, CX and Service Design talent are looking for a new role yet 65% would be willing to leave for the right offer.

Salary increases are as follows: junior UX designers and midweight UX designers have increased by 33%; while top-end senior UX designer salaries have risen by 50% (£80k to £120k).

In some cases, senior UX architects have seen salaries double, from 60k in 2021 to £120k, a 50% rise. Compared to data from five years ago, UX architects have seen a 150% increase and senior UX designers a 70% increase in wages since 2016.

Aliza Sweiry, UK managing director, Aquent, commented: “The boost is salaries is welcome news for candidates on the look-out for a new role in 2022. The job market has been turned on its head from the situation last year becoming an ‘employees’ market.

“This is a great time for applicants with itchy feet to explore the job market, we’re seeing candidates ‘flex their muscles’ in terms of what they want and expect from a role and employers are responding with higher salaries and more flexible working options. As always, our salary guides always throw up interesting insights and this year has been no different. It will be fascinating to see how the industry responds this time next year.”

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Lack of transparency around salaries hinders women

A recent survey from Glassdoor, the jobs and insights agency, has found that women across the UK are at a disadvantage because of a lack of transparency around salaries. A mere 25% of full-time employees in the UK strongly agree that their employer is transparent about pay with 54% of workers admitting they aren’t comfortable discussing their salary with their boss.

The survey suggests that the lack of discussion around pay is contributing to inequality for women. Sixty-seven percent of female workers didn’t ask for a salary increase in 2020, which equates to 30% more than men. In the last year, 35% of those working in the female-dominated industries of education, healthcare, and hospitality asked for a wage increase compared to 62% of those working in the traditionally male-dominated world of finance and 56% in tech.

According to the results of the survey, women are also 26% less likely than their male counterparts to ask for more money in the next 12 months, with 37% of women planning to ask for a pay rise next year.

The survey revealed that over half (56%) of women admit they lack the confidence to ask for a pay rise and as a result, only 33% of female workers negotiated the salary of their last job offer (compared to 45% of men). Two in five (43%) women revealed that they simply accepted the salary that was offered to them (compared to 35 percent of men).

Nearly three in four of all employees (73 percent) got the wage increase they asked for last year, indicating that women will continue to miss vital opportunities to increase their earning potential.

Jill Cotton, Career Expert at Glassdoor commented: “Workplace transparency is a hallmark of many successful companies and more transparency is needed in the future. One in two women admit to lacking confidence at work – companies should open an honest discussion around salary from the point that the role is advertised and throughout the person’s time with the organisation. Having clear salary bands limits the need for negotiation which, as the Glassdoor research shows, has a detrimental effect on female employees’ ability to earn throughout their career.

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