2023 Salary Guide v10 DIGITAL - Flipbook - Page 12
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Salary trends
Starting salary growth for permanent roles continued to break records
in 2022, as ongoing candidate shortages intensified competition for
talent. Salary inflation peaked in March, with the REC/KPMG Report on
Jobs reporting the sharpest rise in starting salaries in nearly 25 years
of data collection.
Since then, markets have cooled slightly. Salaries are still experiencing
solid growth, albeit at a reduced rate. Furthermore, while pay pressures
remain at historically elevated levels, November saw the slowest
increase in permanent salaries and temp pay since April 2021.
Across the markets in which we specialise, similar trends are occurring.
We saw astonishing salary increases in 2021 and early 2022, but the
rate of growth has predictably calmed as the year has progressed.
Given the current climate, it’s perhaps not surprising that salaries have
been the biggest driver of candidates entering the job market. Half of
professionals chose remuneration as their primary reason for
seeking a new role, with career development a distant second (19%).
Many organisations recognise the challenges they face finding the
right people, whether they’re looking to replace outgoing staff or grow
their functions. As a result, counteroffers are becoming more common
– and increasingly attractive – as employers fight hard to keep hold
of their best staff.
More broadly, employers intend to increase base salaries for existing
employees by 7% on average over the next 12 months, a slight increase
from the 6% in 2022.
However, organisations are already feeling the pressure of meeting
salary demands. Just 4% of employers believe candidates’ expectations
are very aligned with their company’s salary bandings – a notable
drop from an already low base of 10% last year.
Not at all aligned: 27%
Very aligned: 4%
Overall, are
candidate salary
expectations
aligned with your
company’s salary
bandings?
Somewhat aligned: 69%
