• Average salary growth in the South East of 2% tops UK average of 1.8%
• Over 10% pay rises for some qualified, professional and skilled workers across the UK
• 64% of employers in the South East plan pay increases in the next 12 months, higher than the UK average
• War for talent intensifies as 70% of employers plan to increase headcount and 81% expect skills shortages will be a challenge
• 58% of employees in the region anticipate they will move jobs in the next 12 months
According to an analysis of job placements made by the specialist recruitment company Hays, over the past year salaries for some professionals have risen by over 10%. Some of the greatest salary increases have been in construction, IT and procurement, with a number of specific roles in the construction sector and IT security specialists enjoying salary increases over 10%. Counter offers are becoming prevalent in all professions as employers compete for the best talent.
The survey of over 1,000 employers and employees in the South East indicated that employers are confident their business activity will increase over the next 12 months and this will result in greater hiring. 70% of employers are planning to increase headcount over the next 12 months; however, 81% of employers are already concerned that they will encounter a shortage of suitable candidates.
Not only is confidence returning to businesses, we are also seeing that confidence has also significantly increased amongst the South East’s jobseekers, with 58% anticipating that they will move jobs in the next year and 36% considering a move within the next 6 months. With 55% dissatisfied with their pay and almost half (49%) stating that there isn’t scope for career progression in their role, the propensity to find a new job is already high and likely to increase further.
Steve Orr, Managing Director of Hays in the South, says:
“Although salary increases aren’t yet widespread, there are definite pockets of very significant rises, which have been fuelled by skill shortages. To date the greatest salary increases have been in sectors suffering from skill shortages where there simply aren’t enough people to fill the gaps. IT, finance, engineering and construction are all prime areas where jobseekers often have the pick of two or three jobs, they get snapped up quickly by employers and they often receive a counter offer from their current employer, which can push their salary up even further.
“Demand for construction workers in Portsmouth has been fuelled by projects such as the redevelopment into housing of the Portsmouth prison and Hilsea bus depot, and we have seen Portsmouth job seekers offered interviews within days of applications. Employers have to sell their business to prospective employees and in some cases offer higher salaries to secure the right person.
“Given that businesses are now more confident about the year ahead and they have plans to take on more staff we expect to see this salary growth take a greater hold by the middle of next year. 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, the situation could soon reach crisis point for employers fighting for the talent they need. Employees rarely move for salary alone but it is always an important consideration and employers need to look at what they can offer in order to attract and retain the best employees.”
To access Hays UK Salary and Recruiting Trends 2015 visit hays.co.uk/salary-guide
For further press information please contact:
T. 020 7200 3760
T. 020 7200 3760
About the Hays UK Salary Guide 2015:
This guide has been compiled using data gathered during 2014 from 96 Hays offices across the UK. The salary data is based on job listings, job offers and candidate registrations. The findings of our benefits survey are based on responses from over 10,000 employers and employees from organisations of all sizes throughout the UK.
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 2014 the Group employed 8,237 staff operating from 237 offices in 33 countries across 20 specialisms. For the year ended 30 June 2014:
- the Group reported net fees of £724.9 million and operating profit (pre-exceptional items) of £140.3 million;
- the Group placed around 57,000 candidates into permanent jobs and around 212,000 people into temporary assignments;
- 24% of Group net fees were generated in Asia Pacific, 42% in Continental Europe & RoW (CERoW) and 34% in the United Kingdom & Ireland;
- the temporary placement business represented 59% of net fees and the permanent placement business represented 41% 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