Employers in the UK braced for talent exodus as professionals seek more money by moving jobs
58% of employers in the UK believe that they will lose staff in the next six months as they seek to earn more by moving jobs, according to new research.
According to the research by global talent services company, Morgan McKinley for its 2023 Salary Guide, 56% of employees in the UK are looking to move jobs in the first half of the year, with 49% selecting ‘higher salary’ as the primary reason, followed by ‘better career growth and development opportunities’ (17%).
The survey revealed that 72% of employers had to offer higher than anticipated salaries to attract new employees over the last year. Furthermore, 74% of employers in the UK think that salaries in their specific sector will rise in 2023, with over half (56%) planning on increasing base salaries across all teams.
55% of employees in the UK are expecting their salaries to increase this year, with 59% also expecting some form of bonus payout.
More than half (56%) of businesses plan to hire new permanent or contract employees in the next six months.
David Leithead, chief operating officer of Morgan McKinley UK, commented: “Whilst the economic downturn will be on many employers’ minds and is bound to depress the hiring market to an extent, there is a strong sense that the kind of talent that can contribute to progress and improvement will remain in high demand. The underlying business needs for talent do not change.”
“Generally speaking, there was strong wage inflation associated with moving jobs in 2022. Many companies tore up the rule book, ignored salary guides, and simply pulled out all the stops to secure talent. The sense of competitive bidding was exacerbated by the determination of the hirer being matched by the current employer not wanting to lose their employee. We don’t expect to see such widespread increases this year, but they are likely to recur in areas where the shortage of skills is acute.”
Leithead concluded: “Despite companies looking cautiously to the future, pressure remains to find new talent in response to staff turnover, driving ahead with change agendas, satisfying new regulatory and legal regimes, and maximising the commercial opportunities that continue to exist. Employers need to ensure what they are offering is aligned to expectations, encompassing salaries and benefits. This is even more crucial considering the skills shortage that remains across many industries. Top talent will always be in demand, and 2023 will be no different in that regard.”
The Morgan McKinley 2023 Salary Guide presents up-to-date salary data for a wide range of roles across the UK, providing hiring managers with industry benchmarks when they are working out what to pay employees and giving professionals more visibility over what they can earn.
Research from businesses and professionals was conducted to find out what companies’ hiring intentions are for 2023, whether there is an appetite to change jobs, and what the expectations are for movement on salaries.
For the Morgan McKinley UK 2023 Salary Guide, visit: https://www.morganmckinley.com/uk/salary-guide