66% of senior leadership encouraged by burgeoning economy
According to specialist recruiter Robert Half, there is no better time to secure a new job with businesses growing in confidence and recruiting for new and vacant positions.
According to their 2022 Salary Guide, the improvement in the UK’s economic climate has boosted the confidence of top-tier leaders with 66% feeling ‘somewhat more’ encouraged about growth prospects over the next 12 months.
The job market is heavily in favour of candidates who now command higher salaries, benefits and working conditions that align with their desired lifestyle. This is proving difficult for employers who need to fill roles created by the post-pandemic working economy.
With this new-found power in a buoyant job market, candidates are free to consider their job options with more than a quarter (28%) of employees likely to look for a new job in 2022 – and many are already searching.
Working from home affects salary potential
Increased activity in the permanent recruitment space is expected in 2022 as 31% of businesses move to fill roles. There is higher demand for talent with hybrid skill sets and digital skills that ensure businesses can keep up with the pace of transformation and automation.
In most sectors covered by the report, salaries are expected to remain static and 25% of employers say they have no plans for increases in the near future. However, with fierce competition in the market, intentions may not match reality, and increases in average monthly salaries show the strength of candidates’ influence when agreeing terms with a new employer.
Location of candidates still matters to employers when hiring for a remote post despite the rise in remote and hybrid working over the past year. Nearly half (47%) of employers believe where the candidate is based could limit salaries for those opting to work far away the office location.
Matt Weston, UK Managing Director at Robert Half, said: “While businesses may not intend to increase the salaries on offer, the booming jobs market means they may need to re-evaluate. With candidates holding multiple offers now, we’re finding that a competitive salary alone is not enough; businesses must review the benefits on offer and promote their values to set themselves apart.”
Rethink benefits to retain talent
To gain that competitive edge, employers are balancing stable salaries by enhancing benefits packages. For example, more than three in five (62%) employers are now offering bonuses above or in line with pre-pandemic levels to counter stagnant salaries. Nearly half (45%) now offer remote working as standard, which is what candidates expect now.
One in five (20%) employees say they would consider leaving their current role if they weren’t offered their desired working arrangements. In such a candidate-driven market it’s imperative that employers meet these needs to retain talent.
Matt Weston continued: “We’re currently seeing demand above and beyond pre-pandemic levels, and despite the so-called ‘Great Resignation’ creating a tsunami of turnover, we are still experiencing a saturated market where the demand for skilled talent outstrips the supply.”