YOUR REGION: United States

Tag: salary increase

Job-changers annual pay rises 15.7% but down from August

It’s the biggest deceleration in salary in a three-year history

According to the ADP National Employment Report, US private-sector employment rose by 208,000 jobs in September compared to August, but growth remains below the three-month average. All of September’s job gains were in the service-providing sectors. In addition, the job gains in August of 185,000 was revised upward from the 132,000 initially reported.

ADP’s report also found mixed news in terms of pay data in September.

Nela Richardson, Chief Economist at ADP commented: “We are continuing to see steady job gains. While job-stayers saw a pay increase, annual pay growth for job-changers in September is down from August.”

ADP noted September’s job gains appeared as schools reopened and pandemic concerns faded.

In terms of pay, job-changers’ annual pay rose 15.7% in September, down from a revised 16.2% in August — it’s the biggest deceleration in the three-year history of the report’s data. For job-stayers, annual pay rose 7.8% in September, up from the 7.7% in August.

Here are the jobs added in September by sector:

  • Goods-producing, down 29,000
    • Natural resources/mining, down 16,000
    • Construction, 0
    • Manufacturing, down 13,000
  • Service-providing, up 237,000
    • Trade/transportation/utilities, 147,000
    • Information, down 19,000
    • Financial activities, down 16,000
    • Professional/business services, up 57,000
    • Education/health services, up 38,000
    • Leisure/hospitality, up 31,000
    • Other services, down 1,000

The ADP National Employment Report is an independent estimate of change in US private employment and pay derived from actual, anonymized payroll data of client companies served by ADP. It’s produced by the ADP Research Institute in collaboration with the Stanford Digital Economy Lab.

The report was recently revamped and is no longer a forecast of the private payroll numbers produced by the US Bureau of Labor Statistics.

The BLS is slated to publish its report on August jobs data on Friday.

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Cost of living impacting careers

  • UK

Millions are looking for higher-paid roles or pay rises

According to a recently published national employee survey showing trends and insights into the UK job market, 52% of UK employees say that the cost-of-living crisis is impacting their career by pushing them to look for a new role or a pay rise from their current employer.

The survey by CareerWallet, went on to reveal that 27% of UK employees are already looking for a new role to earn more money to survive the cost-of-living crisis. A further 25% have either asked or are planning to ask for a pay rise from their current employer.

The cost-of-living crisis has driven up the costs of food, petrol, and energy bills. Of the employees surveyed, those under 30 have been most impacted. Thirty-five percent of these are in the process of looking for a new role. Regionally, the North East is most affected, with 40% of all employees changing roles.

The survey revealed how many employees are impacted by the increased cost of living. It highlights that current salaries and pay rises need to cover these costs to retain their staff and prevent them from looking for opportunities elsewhere.

Craig Bines, CEO at The CareerWallet Group, commented:  “At CareerWallet, we process millions of jobs a day and this allows us to quickly see how the job market is being impacted on a daily basis.

Our national employee survey has highlighted how UK employees are already being impacted by the rise in the cost of living and are actively looking to counter this by pursuing a new role or a pay increase and it is important that all employers are aware of this and act quickly to keep their talented people in their businesses.”

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One-in-three move for better pay

  • UK

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.”

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Only 33% of Australian employees happy with their current benefits

Salary increases on the rise but workers feel they deserve more

Although salary increases are rising, only 33% of Australian employees are happy with their current benefits. This is according to recruitment company, Hays.

Hays believes that benefits can help bridge the salary expectation gap and aid staff attraction. According to their latest Salary Guide, 35% of employers have improved benefits and working practices to entice more staff.

The data also showed that allowing more than 20 days’ annual leave is one of the most sought-after employee benefits. This year’s data shows that the benefit is desired by 55% of job seekers, compared to 30% last year. The most desired benefit, according to Hays, is training, at 57%. Interestingly, while 87% of employers offer training as a benefit, only 23% provide more than the minimum legal requirement for leave.

Next on the list of top five benefits are:

  • ongoing learning & development (53%)
  • mental and physical health and wellbeing programs (38%)
  • formal career paths (38%)

Flexible working is not on the list of highly prized benefits, likely because although it was a top benefit pre-pandemic, it is now the expected norm.

Professionals are advised to consider the complete value exchange – even if salaries are not meeting expectations, workers should consider whether the benefits they receive enhance the complete value exchange they receive for their skills and experience.

Nick Deligiannis, Managing Director of Hays in Australia & New Zealand, commented: “With a salary expectation gap evident, offering the benefits employees value can help reward and retain top talent in a competitive labour market.”

“The pandemic prompted many people to prioritise their work-life balance and mental health, to care for their health and wellbeing they now want a job that offers more than customary annual leave.”

“If a person’s time is as valuable as money, additional annual leave can add significantly to their overall package.”

“For employers looking to modernise their benefits portfolio to attract, reward and retain staff, it’s important to reconcile your offering with what employees’ value, training and additional annual leave are obvious improvement points. So is the provision of formal career paths, which 38% of employees want but only 20% of employers offer.”

“For jobs that can be performed outside a central workplace, skilled professionals expect to work in a hybrid arrangement,” he said. “After more than two years of hybrid working, it’s no longer considered a benefit that can attract and engage staff but rather a minimum ordinary entitlement.”

“If your salary increase falls short of expectations, consider what else you can ask for. In particular, think of your long-term career objectives. Additional benefits such as training, formal career paths and mental and physical health and wellbeing programs, for instance, could lead to a promotion and higher compensation long-term than a small raise here and now.”

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UK towns and cities most affected by the Great Resignation

  • UK

UK vacancies up 48% year-on-year

The locations with the highest rates of jobseekers have been revealed in a new study. London, Manchester, Birmingham, and towns on London’s commuter belt topped the list. The study results indicate that as offices reopen and daily commuting re-commence, workers are searching for roles closer to home.

The research by job search engine Adzuna also revealed that every advertised London-based job ad received an average of 65 views during April – indicative of high job churn in the capital city and centre of the Great Resignation in the UK.

Second on the list of jobseeker activity was Manchester, with over nine views for every job listing. Birmingham was third at over seven views per ad.

Edinburgh, Scotland, and Cardiff, Wales, also featured on this list, with view rates of 2.5 and 1.83, respectively. Northern Ireland, however, didn’t feature on the list – possibly showing that the Great Resignation has not reached them yet.

Further findings for April 2022 included:

  • Advertised vacancies in the UK were up 48% year-on-year, to 1,298,581.
  • Over half a million vacancies were on offer across London and surrounding areas.
  • The average advertised salary in London and surrounding commutable areas was £45,515.
  • The average advertised UK salary was £36,587 in April. This is 3% lower than 12 months ago (£37,898).
  • The number of advertised vacancies has exceeded the number of job seekers for the first time.

The study also revealed a growing interest in jobs within commuter towns. Slough and Heathrow experienced the fourth-highest jobseeker activity level. While traditionally, workers in these locations would have commuted into London, they are now looking for jobs closer to home. Job ads, on average, received over four views per posting in these areas.

There was also high jobseeker demand in other commuter towns around London:

  • Chelmsford (2.47)
  • Reading (2.45)
  • Guildford and Aldershot (2.07)
  • Luton (1.88)
  • Crawley (1.87)

The commuter belt towns accounted for a fifth of the list of top 30 UK towns and cities with the highest jobseeker activity.

Looking across the UK, England had the highest activity from jobseekers, with an average of 3.6 views per job ad. Rates were much lower across the rest of the UK with Scotland at 0.26, Wales at 0.11 and Northern Ireland at only 0.03.

Paul Lewis, Chief Customer Officer at Adzuna, comments: “London is at the core of the Great Resignation in the UK, but our data reveals the trend is spreading out fast. In particular, jobs in commuter towns are seeing high interest levels driven by a renewed interest from Brits to spend more time at home. As offices have reopened and commutes have restarted, workers are looking for close to home options that will continue to give them the flexibility they got used to over the pandemic and various lockdowns, be that picking the kids up from school, or simply working flexible hours. The return-to-office is a huge driver of the current high movement between jobs, and companies offering fully remote options, or even much publicised ‘work from anywhere’ policies, are stealing a march on the competition and coming out on top.”

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Only 1 in 10 UK professionals likely to receive pay rise this year

  • UK

74% feel unsupported as wages aren’t keeping up with increasing cost of living  

In CV- Library’s survey of over 4,000 workers by website, it was revealed that 89% of employees either don’t know whether they will receive a pay increase or have already been told that they won’t receive one.

With increasing pressure on budgets and wages not matching the increasing cost of living, the study found that only 11% of employees know that they will get a pay rise. Eighty-one percent believe that the topic is being ignored, and 8% already know that they will not receive a pay increase.

As a result, almost 74% feel unsupported and believe that their employers are unsympathetic regarding the rising pressure on household budgets.

Lee Biggins, CEO and founder of CV-Library comments: “There is no doubt that rising costs and global uncertainty are beginning to impact the job market. Whilst businesses need to balance their own increased costs with the salary needs and expectations of their staff, it’s vital that they take action and at least open lines of communication with their employees.”

“With unfilled vacancies still high it will be tempting for professionals to look elsewhere if they don’t have any clarity and continue to feel unsupported. We’re beginning to see evidence of this with number of new CV’s registered on CV- Library last month up 13.4% year on year.”

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UAE salaries set to rise

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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