• 85% of employers say they have increased pay for staff over the last 12 months – with 40% increasing pay by over 5%
• 70% of employers say pay rises given to staff over the last 12 months have been influenced by the increase in the cost of living – rising from 54% in the 12 months prior  
• Cost of living affecting decisions around moving jobs, as many professionals say their pay is not covering living expenses

The increase in the cost of living has not only resulted in many employers continuing to increase pay for staff, but employees are also weighing up whether they’d be better off moving jobs for a better wage or staying put for more job security according to new research by Hays.

85% of employers say they have increased pay for staff over the last 12 months – with two in five (40%) saying they have increased pay by over 5%, rising from 26% who said they increased pay by over 5% last year. 

The research, which forms part of the Hays Salary & Recruiting Trends guide 2024 received over 14,900 responses from employers and professionals. 

Over two-thirds (70%) of employers say recent pay rises given to staff have been influenced by the increase in the cost of living – rising from 54% who reported this last year.

Just over a quarter (27%) of professionals say they have received a cost of living increase in the last 12 months, and 36% say this has had a noticeable impact on their life. Nearly two-thirds (64%) said the increase hasn’t had a noticeable impact. 

Cost of living affecting decisions to move job 

Nearly half (42%) of employees say the current cost of living is making them more inclined to move job, mainly due to their current salary being unable to cover their living expenses (58%). A further 17% are worried about the job security in their current role. 

On the other hand, 17% of employees say the cost of living is making them less likely to want to move job, either because they are worried about leaving a secure position (42%), they’re worried about the job security in a new position (23%) or they’re concerned they won’t get the same benefits in another role (19%).  

Two in five employers admit they aren’t transparent when it comes to pay

The findings also revealed that employers admit there’s room for improvement when it comes to pay transparency. Although three in five employers (60%) say they are transparent about pay, two in five (40%) employers say their organisation isn’t consistently transparent with staff about how pay levels and pay rises are set. 

Nearly half (44%) of professionals believe their employer isn’t transparent when it comes to pay, versus 39% who said the same 12 months ago.  

Simon Winfield, CEO of Hays UK & Ireland, commented: “It’s a really challenging time for both employers and staff as the cost of living continues to rise and inflationary pressures mean employers are stretched financially. 

Although a good proportion of employers have continued to offer pay increases, or cost of living support over the past 12 months, it’s clear that some workers are seeking higher paid salaries and new jobs in order to cover their living expenses.

What organisations can do is be as transparent as possible when it comes to pay in order to build an important sense of trust between employers and staff. It’s also crucial for organisations to communicate what support might be available for both existing staff and prospective employees, which in turn improves talent attraction and retention.” 

About the research: The survey was conducted between the 10th of August – 11th September 2023 and received 14,915 responses. 

Contact
Helen Flannery
Senior PR Manager 
helen.flannery@hays.com
T: 020 3040 0282
M: 07548 778306

About Hays

Hays plc (the "Group") is the world’s leading specialist in workforce solutions and recruitment, such as RPO and MSP. The Group is the expert at recruiting qualified, professional and skilled people worldwide, being the market leader in the UK, Germany and Australia and one of the market leaders in Continental Europe, Latin America and Asia. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As at 30 June 2023, the Group employed over 13,000 staff operating from 252 offices in 33 countries. For the year ended 30 June 2023:

• the Group reported net fees of £1,294.6 million and operating profit of £197.0 million;
• the Group placed around 76,800 candidates into permanent jobs and around 245,000 people into temporary roles;
• 15% of Group net fees were generated in Australia & New Zealand, 30% in Germany, 21% in United Kingdom & Ireland and 34% in Rest of World (RoW);
• the temporary placement business represented 57% of net fees and the permanent placement business represented 43% of net fees;
• Technology is the Group’s largest division, with 26% of net fees, while Accountancy & Finance (15%) and Engineering (10%), are the next largest
• Hays operates in the following countries: Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, the Czech Republic, Denmark, France, Germany, Hungary, India, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Romania, Singapore, Spain, Sweden, Switzerland, Thailand, UAE, the UK and the USA