This site uses cookies. If you continue you consent to this but you may change your cookie settings at any time.

Contact us


24 November 2015

• Salaries increase by 1.7% in 2015 in the North East with three fifths of employers expecting to raise pay again next year
• 63% of employers in region confident that business activity levels will increase in the next 12 months
• War for talent intensifies as 69% of employers plan to hire additional staff
• Employees in the construction and IT sectors see biggest jumps in salary

According to the Hays UK Salary & Recruiting Trends 2016 report, which includes a survey of over 600 employers and employees in the North East, increased confidence in the region’s economy and a more fluid jobs market will not only lead to an increase in hiring next year but will see employers come under unprecedented pressure to raise pay. 

The analysis of data from Hays job listings, job offers and candidate registrations showed the region’s salaries for qualified, professional and skilled workers grew on average 1.7% in 2015, lower than the national growth of 2.3%. The average professional salary for the region is now £42,458.

The survey shows that pressure over pay is only set to intensify next year. Three fifths (60%) of employers in the region anticipate raising pay in 2016 with over one in ten (17%) expecting to award salary increases of above 2.5%. The construction and IT sectors saw a 3% average salary increase, the largest in the region.

The report also indicates that confidence in the region’s economy is high. In the North East over three fifths (63%) of employers expect business activity to increase next year and 69% also expect to recruit more staff to meet demand.

Increased economic confidence may have consequences for staff retention, with more than half of employees in the region expecting to switch jobs next year. This is also reflected in the region’s biggest city, as almost three fifths (59%) of employees in Newcastle expect to move jobs in 2016.

Pam Lindsay-Dunn, Managing Director of Hays Yorkshire Region, said:

“Economic confidence in the North East is high and many businesses are now turning their thoughts towards next year as they look to increase their headcount to meet the demands of a busier 2016.
Skill shortages in the region are still of concern and we continue to see a power shift from employers to candidates. Therefore, businesses will need to work harder to stand out in a crowded jobs market to attract and retain the best. With over half of employees in the region dissatisfied with pay and the most common reasons for wanting to move jobs being salary and lack of future opportunities, employers will need to dig deeper into their pockets and provide clear progression paths to appeal to top talent and retain their skilled workers.
The construction industry saw some of the largest salary increases in the region this year and retaining and attracting talent will prove a particular issue for the North East construction sector in 2016. The industry has high expectations for the year ahead and we are seeing more construction developments appearing in Newcastle and across the region. There are multiple large projects in progress all over the region such as the Newcastle science park and the multi million pound Jesmond Three Sixty development which reinforce high hopes for 2016.

However, with over half of construction professionals in the North East set to move jobs in the next year, many businesses will have difficulty finding the staff numbers required to meet increasing demand. Employers will need to offer substantial remuneration packages if they’re to attract and retain the sector’s top talent and continue this momentum into 2016.”


For further press information please contact:
Yasmin Thompson
T: (0)207 200 3760

About Hays UK Salary and Recruiting Trends 2016
Data compiled using data gathered during 2015 from Hays offices across the UK, based on job listings, job offers and candidate registrations. Survey responses from 20,000 employers and employees from organisations of all sizes throughout the UK.

About Hays
Hays plc (the "Group") is a leading global professional recruiting group. The Group is the expert at recruiting qualified, professional and skilled people worldwide, being the market leader in the UK and Asia Pacific and one of the market leaders in Continental Europe and Latin America. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As at 30 June 2015 the Group employed 9,023 staff operating from 240 offices in 33 countries across 20 specialisms. For the year ended 30 June 2015:

– the Group reported net fees of £764.2 million and operating profit (pre-exceptional items) of £164.1 million;
– the Group placed around 63,000 candidates into permanent jobs and around 200,000 people into temporary assignments;
– 23% of Group net fees were generated in Asia Pacific, 41% in Continental Europe & RoW (CERoW) and 36% in the United Kingdom & Ireland;
– the temporary placement business represented 58% of net fees and the permanent placement business represented 42% of net fees;
– Hays operates in the following countries: Australia, Austria, Belgium, Brazil, Canada, Colombia, Chile, China, the Czech Republic, Denmark, France, Germany, Hong Kong, Hungary, India, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Russia, Singapore, Spain, Sweden, Switzerland, UAE, the UK and the USA


Find out more