UK companies ‘willing to pay more to gain access to talent’

Posted 20th April 2017 in For Businesses For Workers

Ongoing demand for skilled workers is leading many companies to offer higher salaries to tempt the best candidates, according to a new industry report.

Results from the latest JobsOutlook survey from the Recruitment & Employment Confederation (REC), which polled 600 employers, found that 22 per cent of employers plan to increase their permanent headcount in the next year, while 12 per cent plan to hire more temporary staff in the next three months – rising to 19 per cent when considering the next 12 months.

This is because 34 per cent of employers have no spare capacity and would need to take on new staff if demand increased, with a further 46 per cent having only a small amount of capacity.

However, skills shortages are often thwarting these plans, with 49 per cent of companies saying they expect a shortage of candidates for permanent roles in the next three months. As such, 42 per cent of bosses who have had difficulty finding the right candidates have increased their salary offer to solve the problem.

Moreover, 80 per cent of companies said they have had to re-advertise a role, with a further 24 per cent resorting to lowering the entry requirements.

REC chief executive Kevin Green said: “If you’re ready and willing to move jobs, you could benefit from an increase in pay, as many employers are increasing starting salaries to attract candidates with the qualities that they’re looking for.

“However, throwing money at the problem isn’t a long-term solution for employers, as they compete with each other for the available talent.”

Mr Green said the answer to this is for companies and educational establishments to place a greater emphasis on providing people with the skills they need to thrive in the workplace, while the government must ensure the immigration system is designed in a way that provides companies with access to workers from overseas.

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