recruitment Hays UK Salary and Recruiting Trends 2017
The skill search is getting tougher, and now we’ve got expectation gaps
Finding suitably skilled staff in 2017 could become a daunting challenge, while workforce retention, with significant gaps between employee and employer expectations, will present obvious difficulties, said Hays regional director Dan Rogers, when revealing in Reading the findings of Hays UK Salary and Recruiting Trends 2017 survey*
“Our research shows a workforce highly motivated by salary and career development. With salary rises being lower than forecasted last year, employers are expected to come under intense pressure to raise pay in order to secure the skills they need.
“Employers also need to provide clear career paths in order to retain and attract the talent needed to meet the demands of post-referendum business challenges,” added Dan Rogers.
Before the Hays’ findings, the CBI’s Thames Valley director Eddie Curzon gave a valuable overview of the surprisingly robust post-Brexit UK economy. He also highlighted CBI members’ migration- linked concerns about retaining access to talent, and the need to improve national productivity (currently lagging behind EU neighbours) to enable pay growth and prosperity.
Hays’ conducted two surveys either side of the Brexit referendum to assess vote decision impacts. Hays comprehensive 256-page report, its third overall UK salary and recruitment insight, provided intriguing results:
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Following the EU referendum, 94% of southeast companies expect their business activity to remain the same or increase in the coming year
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The referendum sparked negativity among employees with 63% doubting their career progression opportunities – foreboding retention concerns
• •
The 2016 SouthEast salary rise of 1.7% fell below expectations – employers can expect pay pressure
A fluid job market now threatens post- referendum economy growth
• More companies are aiming to make permanent appointments – usually indicating confident long-term planning – but temp hiring remains strong because of significant sector skill shortages.
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One standout finding was that despite ongoing economic and political uncertainties the UK workforce is not shying away from a career move. Two- thirds of employees anticipate they will move jobs within the next 12 months.
Employees planning to move increased from 59% last year to 62% pre-referendum and 66% after the Brexit vote.
Frustrated expectations seem to be key factors
“Employers need to address mismatches in expectations, which have continued to take hold this year,” Rogers stated.
Career progress
A key reason for leaving is lack of potential career progression. In 2015 just over 53% felt there was scope for progression, 49% this year pre-referendum, falling to 38% in the post-referendum survey. “Alarming statistics, with a clear year-on-year trend emerging, of which Thames Valley employers need to take careful note.”
Salaries
South East professional salaries increased by 1.7% in 2016, below the 2.8% UK average rise predicted by employers 12 months ago. Although 72% of employers in Reading expect to make further increases this year, only a third plan to raise pay by more than 2.5%. Dissatisfaction with salaries and benefits among South East employees is higher than the national average.
Skills gaps
Whereas 97% of employees feel they have the skills to fulfil their job roles, 35% of employers say they don’t have the talent they need to achieve their business objectives.
“Even with more professionals looking for new jobs, and employees unhappy with career progression, the skills shortage and talent mismatch persists. If anything the new environment is exacerbating skills shortages,” said Rogers.
Dan Rogers (left) and Eddie Curzon after making their presentations
Hays Reading: 0118 9070321 *More information:
hays.co.uk/salary-guide
Work-life packages
Too many employers are not focused on what employees want. For example, two thirds of employees see flexible working as important; only 55% of employers offer it. Financial support for professional studies is provided by 46% of employers; barely a quarter of employees prioritised that.
“We believe employers need to calibrate the benefits they offer and promote them better to get the best talent coming through their front door.”
Hays advised employers to be agile with their processes and offerings and gave businesses three recommendations for 2017:
• • •
Build a talent pipeline now to support long-term hiring plans
Support and promote career progression
Re-evaluate your rewards packages.
THE BUSINESS MAGAZINE – THAMES VALLEY – DECEMBER 16/JANUARY 17
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