12 human resources


Hays UK Salary and Recruiting Trends 2015 survey results


Companies are recruiting for growth but also need to prepare for battle, writes John Burbedge


Although Thames Valley businesses are now confidently looking to grow, the battle for talent is set to get fiercer as skilled recruits and existing staff seek better employment packages and companies fight off rival salary offers in order to retain valued employees.


“We expect to see salary growth take a greater hold by the middle of next year and salaries are going to continue to be a battleground over the next 12 months,” said Hays regional managing director Simon Winfield, when revealing the results of Hays UK Salary and Recruiting Trends 2015 survey* in Reading.


“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.”


While the majority of Thames Valley businesses are currently aiming to boost commercial activity and enhance their workforce, most are not doing enough to tackle the twin challenges of attracting talented employees and then retaining them, Winfield warned.


Particularly, as their top three recruitment challenges are a shortage of suitable applicants, competition from other employers, and unrealistic demands from applicants.


The comprehensive 220-page Hays analysis, the first ever compiled as an overall UK salary and recruitment insight, emphasised Winfield’s views through a series of enlightening results:


• The battle for talent is intensifying. 70% of employers plan to increase headcount and 81% expect skills shortages will be a challenge


• 64% of employers in the South East plan pay increases in the next 12 months, higher than the UK average


• Salary growth, widely regarded as good for the current consumer-led UK economy, is not widespread but is now occurring. Average salary growth in the South East is 2%, topping the UK average of 1.8%


… and worryingly for employers


• Across the UK, pockets of significant pay rises above 10% are being seen in some sectors (eg IT, construction) fuelled by shortages of qualified, professional and skilled workers


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• 58% of employees in the region anticipate they will move jobs in the next 12 months; 36% are considering a move within six months.


“Businesses need to deal with this challenge before it gets to the stage where their people think about leaving,” said Winfield. The Hays report revealed that 55% of respondents were dissatisfied with their pay and almost half (49%) didn’t see any scope for career progression in their current role.


“Employees rarely move for salary alone, but it is always an important consideration, and employers need to look at their overall employment package and what they can offer in order to attract and retain the best employees.”


Within the Thames Valley, Winfield highlighted the IT, construction, engineering, financial and procurement sectors as facing the stiffest skills shortages and hence recruitment competition.


“Construction demand is growing fastest, but IT is not far behind,” he noted. “There are prime areas where jobseekers often have the pick of two or three jobs.” Counter salary offers are also becoming prevalent in all professions as employers compete for the best talent.


While people had been happy to have a job during the recession, now, as the recovery firmed up, there was a move towards a candidate-led recruitment market – with a growing tendency for workers to highlight their becalmed standard of living and future employment requirements.


However, that wouldn’t necessarily involve only salary increases, Winfield explained. As a previous Hays report had shown Generation Y employees, born 1983 -1995 into a digital world, have a different outlook on employment.


Generation Y wants employee engagement, to be supported, mentored and motivated, within a fulfilling job. They have a thirst for learning – internal training and development, the chance to gain qualifications, are important for most Generation Y candidates – and they don’t like traditional hierarchical managements.


Financial support for study, vocational upskilling, flexible and home working, healthcare, childcare and travel provision, plus generous annual leave and pensions were all now attractive to potential employees, said Winfield. Lack of salary, benefits, career


THE BUSINESS MAGAZINE – THAMES VALLEY – DECEMBER14/JANUARY15


Simon Winfield and Sara Parker chatting before making their presentations


progression and interesting work were reasons for leaving.


Reducing the skills shortage would require greater collaboration between the academic and business worlds, and probably government assistance, said Winfield. He commended companies that ‘grew their own’ personnel, or got involved in apprenticeship schemes.


Providing a UK economic overview at the launch, CBI chief membership director Sara Parker mentioned that employers annually spend £50 billion training and upskilling their workforces. But, attracting recruits to perceived less glamorous careers remained a concern, she noted, when there were half the jobs in hair and beauty and twice the jobs in engineering as there were people completing relevant qualifications.


The lure of London was also an issue, but Winfield added a heartening note: “Across the region, we are starting to see employers becoming more confident, investing in their staff and increasing hiring. Due to this, more job seekers are returning from London to the local area for its better work-life balance as more job opportunities emerge here.”


*More than 1,000 South East employers and employees were surveyed; 10,000 nationwide.


Details: Hays in Reading: 0118-9070321 Survey via: hays.co.uk/salary-guide


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