UK – Fierce competition for talent, but anticipated pay rises remain at 3%: CIPD
Posted 18th May 2022 • Written by staffingindustry.com • • • • •
Recruitment intentions among employers in the UK remain high across all industries, according to the Chartered Institute of Personnel and Development’s “Spring 2022 Labour Market Outlook” survey.
Recruitment intentions remain above pre-pandemic levels and 74% of employers said they plan to recruit in the next three months. Only 6% of employers plan to decrease staff levels over the next quarter. But while recruitment intentions remain strong, CIPD warns that a lack of candidates will likely start to drag on growth.
Responses to recruitment challenges reported by employers include raising pay, 44%; upskilling existing staff, 39%; and advertising more jobs as flexible, 38%. However, employers may have reached a limit to how much further they can go on pay: Only 27% anticipate raising pay to address recruitment challenges in the next six months.
For the second consecutive quarter, median basic pay increases are expected to be 3% which means they are sustained at the highest level recorded since the report series started in its current form in early 2013.
“The prospect of bumper pay awards will take the edge off high inflation for some workers, but it will still be strongly felt by many people struggling with the rising cost of living,” said Jonathan Boys, labour market economist for the CIPD. “Our research also suggests that employers are running out of steam on their ability to increase pay any further, so they’re switching their focus to retention and keeping their existing workforce happy.”
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