In the last 12 months we’ve seen the so-called ‘great resignation’ come and go and with it there have been some major impacts on the UK Financial Services labor market. Some were a ‘flash-in-the-pan’, and some will have a long-lasting impact on how we attract and retain hires.
Retain NOT Replace
It’s likely that you have spent time and money on any new hires you have made and there is always pain along the way. With this in mind, you need to do all you can to make sure you work hard to retain your people, something that a majority of senior leaders overlook. After all… it will be time-consuming, expensive and unsettling for the team if you had to do it all again and none of us want to hire the same role twice if we can help it.
What can you do to retain good people…?
Reward excellence and promote. Why wait – take too long and someone will beat you to it.
Good old supply and demand
Supply and demand at the non-executive level has spiked and has had a lasting impact on salary expectations for many. For those of us that experienced hiring Newly Qualified Accountants in the last 12 months – WE FEEL YOUR PAIN!!
Expectations on base salaries have gone up on average by 14%, counter-offers were the order of the day and in some instances, NQ’s increased their salaries by up to 50%, yes 50%!!
There were far more roles than there were candidates and it would have been unusual for a quality applicant not to have multiple offers. This led to some bidding wars – which were a thing of the past.
All of this has led to increased salary levels and has also pushed up expectations on benefits and bonus, employee wellbeing and development and has forced some companies to ‘UP THEIR GAME’! UK unemployment is at 3.7% – lower than any rate since the early 1970’s. No wonder hiring has got more expensive!
Cost of Living
In a recent survey, 70% of the UK workforce is worried about their current salary in light of the cost-of-living rises. Increased mortgage charges and the boom in the rental market also weigh heavy on our minds. The average salary grew by 4.2%. Inflation is at 10.5% so it does not take an Accountant to do the maths.
Cost of living is at a 30-year high with fuel, food, and housing prices unlikely to drop significantly in 2023. 34% of workers surveyed said they were considering moving roles based on the need to earn more money, with a high percentage of them seeking better benefits and bonus potential over job satisfaction and career development. In real terms, the average person’s wages have declined by 4% in the last 12 months.
It’s not all about the money… is it…?
In a recent UK survey, 71% of people said that a supportive working environment with a flexible and positive culture was as important to them as salary.
With mortgages hard to come by and deposits even harder to muster, this current generation are not all about the money. In many cases they feel that buying a house is simply unattainable, they can’t afford a car – let alone the fuel & insurance and rents are so high that disposable income is far less than it used to be. Making your culture as supportive, inclusive, and positive as possible will help you attract and retain hires.
David can beat Goliath. So, even if you cannot compete with world-beating benefits and Hedge-Fund bonuses you absolutely can out-compete on making your work culture an amazing and attractive place to be and guess what? If you can do that, the rest will look after itself!