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THANKS FOR YOUR INTEREST IN THE HAYS UK SALARY & RECRUITING TRENDS GUIDE
The Hays UK Salary & Recruiting Trends 2023 guide is now available. Gain access today and discover key insights into the employment market based on our survey of over 13,400 employers and professionals, as well as salary data for 10,000+ roles across 17 different specialist and technical areas.
Promoting purpose key to hiring
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Recruitment plans reach eight year high
Positivity about the long-term economic climate and employment opportunities have declined for both employers (from 64% last year to 40%) and employees (from 39% to 32%). Despite this, 60% of employers expect their organisation’s performance to increase over the next year and 33% expect it to stay the same.
We’re seeing a frenzy for talent as organisations seek to take advantage of the post-Covid recovery.
Employers continue to face challenges because of changes to IR35 legislation which were enforced in the private sector in April 2021. The reforms passed the responsibility for determining the tax status of all personal service company (PSC) interim workers to the hiring organisation. 52% of employers who have engaged with PSC workers since April 2021 say it’s harder to hire non-permanent contractors or temporary workers due to the reforms. Other challenges range from increased costs and workloads to comply with the changes, through to loss of key talent and delayed projects. Contractors intend to take a variety of approaches should a future assignment be determined to be in scope of IR35, including looking for a permanent job (32%) or looking for an out of scope contract (25%). 24% expect to take the PAYE offer.
IR35 reforms still impacting interim hiring
The three biggest challenges employers expect to face in the next 12 months due to the April 2021 IR35 reforms
RECRUITING TRENDS
Although there are concerns around the rising cost of living and wider economic climate, employer hiring plans remain at an all-time high. Despite a slightly higher proportion of employees planning to move jobs in the next 12 months as they seek a better pay package, competition remains fierce to find the right professionals.
EMPLOYMENT OUTLOOK
Employers planning on recruiting staff over the next 12 months
80%
60%
20%
40%
0%
2016
2014
2015
70
2020
2017
2018
2019
2021
(post-EU referendum)
(pre-EU referendum)
74
65
71
76
68
80
Potential cost increases
Loss of key talent
Increased workloads to comply
60
%
42
31
1/2
The top three actions contractors plan to take if a future assignment is determined to be in-scope of IR35
2/2
Look for a permanent job
Take the PAYE offer
Look for an out of scope contract
32
25
24
Why do employers plan to recruit temporary, contract or interim staff over the next 12 months?
To meet peaks in demand
To cover staff on long-term leave
36
Access to specific skills for one-off projects
22
Difficulty finding suitable permanent workers
To ensure flexibility of staffing costs
17
To cover extra workload as a result of legislative changes
15
63
28
23
12
Organisations are contending with various difficulties in the year ahead. External factors posing the biggest challenges include the rising cost of living for staff (62%), followed by the economic climate (59%), rising costs for businesses (55%) and being able to recruit the right talent (52%). Internal factors causing challenges include talent retention, skills shortages and managing change.
Access to skills has been threatened by legislative changes, including Brexit and IR35. Whilst over half of employers (55%) say Brexit has not impacted their organisation’s ability to access talent and skills, a further third (34%) believe Brexit has decreased their ability to hire the right people. Employers who are reliant on migrant workers have been especially affected by Brexit, with 73% saying their access to these workers has been negatively impacted.
Access to skills slumps due to legislation
To overcome this decrease in access to talent due to Brexit over the next 6 months, employers plan to hire temporary workers, recruit apprentices and increase marketing activity to raise their organisation’s profile with prospective candidates.
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Top actions employers plan to take in the next 6 months to overcome decreased access to talent and skills due to Brexit
Hire temp or contract workers
Increase marketing activity
27
Recruit apprentices
26
Increase training budget
Encourage more diverse range of applicants
21
Furthermore, 27% of employees believe Brexit will decrease their future employment opportunities, while 44% do not believe there will be an impact. To overcome this decrease in access to talent due to Brexit over the next 6 months, employers plan to hire temporary workers, recruit apprentices and increase marketing activity to raise their organisation’s profile with prospective candidates.
Gaelle Blake, Director of Permanent Appointments, Hays UK & Ireland
Technology
Supply Chain & Logistics
Shared Services
Procurement
Policy & Strategy
Personal & Executive Assistants
Office Support
Marketing
Life Sciences
Legal & Company Secretarial
Insurance
Human Resources
Engineering & Manufacturing
Construction & Property
Accountancy & Finance
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At a glance
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Benefits and hybrid working
Do you agree that your organisation is consistently transparent with all employees about how pay levels and pay rises are set?
Employers
Employees
No
Yes
61
39
54
46
Employees want to see even more pay transparency
Bonuses also soar as a means to attract and retain talent
Bonuses are also on the rise. A greater proportion of employers offered staff a performance-related bonus this year (57%) compared to last year (42%). Of these, 56% offered a higher bonus, compared to 44% who did so last year. Despite this, employee satisfaction with bonuses remains on a par with the year before, with 79% saying they are happy with their bonus compared to 80% last year.
2022
Salaries continue to rise at a rapid pace. Over the last year 83% of employers have increased their employees’ salaries or rates of pay, compared to just 57% who did so the year before. Over half (54%) say this is a direct result of the rise in the cost of living. Overall, salaries increased by an average of 5.4%, with the highest increases across legal (7.4%), technology (7%) and engineering and manufacturing (also 7%). Most employers (79%) are expecting to increase salaries again in the year ahead, compared to 61% who planned to hike pay last year. Employee salary satisfaction remains unchanged compared to previous years, with 64% saying they are happy with their current pay.
Pay increases soaring
RECRUITING TRENDS SALARY LEVELS
The rising cost of living combined with talent shortages and strong hiring plans are resulting in higher salaries. Many roles are seeing pay increases of 10-20% (depending on the profession and sector), with employers expecting to continue to increase salaries well into the next year.
Over the next 12 months, how are employers likely to change their workforces’ salaries?
Increase
Stay the same
Decrease
During the last 12 months, how have employers changed their workforces’ salaries?
Increased
Stayed the same
Decreased
83
57
48
16
41
47
1
2
5
79
20
38
50
61% of employers agree that their organisation is consistently transparent with all employees in terms of how pay rises are distributed, showing almost no change from last year (64%). However, 46% of professionals do not agree that this is the case. Women are more likely to disagree that their organisation is consistently transparent about pay levels and pay rises (49%) compared to men (43%). This is a key issue as transparency around pay is considered important by 79% of professionals. Furthermore, nearly one in five employees (19%) say they are aware of a gender pay gap at their organisation, of whom a further fifth (20%) say the issue is significant enough for them to consider leaving their organisation.
How did the bonus staff received compare to last year?
56
45
44
11
Top five average salary increases over the last year
Legal
Engineering and manufacturing
7.4
7.0
6.5
Business support
Accountancy and finance
6.0
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Average salary increase over the last year
5.4
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Benefits & hybrid working
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Optimistic
Access specific skills for one-off projects
Cover staff on long-term leave
Ensure flexibility of staff costs
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RECRUITING TRENDS Salary levels
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Insights for the future world of work
Work-life balance improving, but employees still want more
RECRUITING TRENDS BENEFITS & HYBRID WORKING
What matters to employees apart from salary? A positive work-life balance, a flexible approach to hybrid working, and benefits aligned to health and wellbeing are top considerations for professionals when deciding whether or not to accept a new job.
Flexible working remains a key want for employees
Top five benefits considered important to employees compared to employers who offer them
Over 28 days paid annual leave
Additional days off for wellbeing
Health insurance or private medical cover
Life insurance
Pension provision above the legal minimum
35
How would employees rate their work-life balance?
Good
Average
Poor
59
30
33
13
52
34
14
Find a new role that is more of a mix of hybrid working
Changes to working practices employees plan to make in the next 12 months
Find a new role that is more office-based
Find a new role based completely remotely
9
72% of employers offer hybrid working, an uplift from 47% who said the same last year. 40% say introducing hybrid working has led to increased staff retention. Despite most employers offering hybrid working, a flexible approach is still key. 62% of employees would be tempted to change job if they could choose how often they were in the workplace when working in a hybrid way. Furthermore, of those professionals planning to make a career change this year, 50% plan to find a job that is more of a mix of hybrid working, and a further 24% plan on finding a role that’s based completely remotely. While most employers (69%) predict their organisation’s hybrid working offering will stay the same over the next 12 months, employees are less certain – with only 55% of the latter believing hybrid working will stay as is and a further 20% unsure if it will change in their current organisation. A further 21% think their employer will require their attendance in the workplace more often.
19
10
Important to employees
Offered by employers
Most valued benefits cover holidays, health and wellbeing
Positive ratings of work-life balance have seen an upward trend over the last three years, increasing from 52% in 2020, to 54% in 2021 and 59% in 2022. It remains the top factor, aside from salary, that is important to one in three professionals when considering a new role.
Furthermore, 28% of employees would accept a lower paid job for a better work-life balance, and a further 28% would work for less money if they were afforded a better work-life balance and a larger sense of purpose.
The main benefits that stand out to employees when considering a new role include annual leave above the minimum legal requirement for full time workers (54%), health and life insurance (46%) as well as
additional days off for wellbeing (39%). However, employers are not necessarily aligned when it comes to offering these benefits to their staff, with less than 40% offering any of these benefits.
Positive ratings of work-life balance have seen an upward trend over the last three years, increasing from 52% in 2020, to 54% in 2021 and 59% in 2022. It remains the top factor, aside from salary, that is important to one in three professionals when considering a new role. Furthermore, 28% of employees would accept a lower paid job for a better work-life balance, and a further 28% would work for less money if they were afforded a better work-life balance and a larger sense of purpose.
The main benefits that stand out to employees when considering a new role include annual leave above the minimum legal requirement for full time workers (54%), health and life insurance (46%) as well as additional days off for wellbeing (39%). However, employers are not necessarily aligned when it comes to offering these benefits to their staff, with less than 40% offering any of these benefits.
Insights for the future
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RECOMMENDATIONS
Skills shortages are soaring and employers are facing strong competition for talented individuals. So, what can employers do to find the right professionals for the job? And how can candidates make the most of the career opportunities available to them in the year ahead? Read our recommendations for answers to these key questions.
How competitive is your pay?
As the world of work changes at an unprecedented rate, now is the time to act to effectively plan for the future. Whether it’s your organisation’s talent strategy or your own career, success depends on the ability to anticipate the future today. That’s why at Hays, we’re working for your tomorrow to help people and organisations succeed. Your success is at the heart of our business, and we bring the people, the technology and the partnership you need to achieve your goals, now and in the future. Speak to our recruitment experts today to get your talent strategy in shape, or to discover your next great role.
Why should someone join your organisation?
Are your flexible working policies flexible enough?
Employees want to maintain a positive work-life balance and many would be prepared to accept a lower salary to improve this balance. Flexible working approaches are key to achieving this. If you’re already offering hybrid working, which most organisations say they are, consider whether you’re being flexible enough. Most employees would prefer to choose the days they’re in the workplace and an organisation that offers this flexibility could tempt them to change jobs.
How are you demonstrating a diverse and inclusive culture?
Are your sustainability credentials easy to find?
Sustainability is becoming even more important to individuals, and organisations who are committed to sustainable goals will find themselves at an advantage when hiring. Our survey results show that four out of five employees consider an organisation’s commitment to sustainability as important when they’re considering a new role. With it being easier than ever for professionals to research an organisation before applying for a job, its key that your organisation’s sustainability credentials are readily available.
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4
Tips for employers
Is it the right time to move jobs?
Are you being paid what you’re worth?
What matters most to you in a new role?
Although pay is important, there are lots of other factors you should consider to find your next great role. Do you want to work somewhere with clear career progression pathways? Perhaps you’re looking for an organisation with a strong focus on sustainability? Or maybe you want to work in a culture that’s diverse and inclusive? Before seeking your next role, think about what really matters to you, so when you speak to your recruiter, they can help match you with a job that will tick all the right boxes.
Are you upskilling for the future?
Should you consider changing your career path?
Tips for employees
The rising cost of living and skyrocketing skills shortages are causing pay increases for many roles. Salary remains the main reason for someone to change job. Ensure you’re pitching competitive salary offers and pay rises by using the salary information contained in this guide for thousands of roles across the UK. If you’d like a more in-depth analysis of how your salary and benefits offering compares to the competition, our salary benchmarking team can help you gain long-term cost savings and attract, retain and nurture best in class talent.
Although pay is important, it’s not the only thing that professionals look for in a new role. To attract talent, you must present compelling reasons why someone should join your organisation. For example, career progression remains a top driver for employees to change jobs. You should therefore put clear progression pathways in place to improve both employee retention and to appeal to prospective candidates. Professionals also want to work for organisations with a strong purpose – for private sector organisations in particular, that means making it clear to prospective candidates the contributions and benefits your organisation makes to wider society. Why not check out our employer branding service to help showcase your organisation as an employer of choice.
Working for a diverse and inclusive organisation is a must for most professionals, and if they don’t see evidence that your organisation has taken steps to mitigate bias when hiring, they may well withdraw their application. Steps you can take include reviewing the language and imagery used in your recruitment materials, involving a range of diverse stakeholders when reviewing CVs and interviewing candidates, and making adjustments to assessments to ensure equity for those with disabilities or impairments. Work with your specialist Hays recruiter who understands how to attract talent from traditionally under-represented groups.
You may be wondering whether it’s a good time to change jobs given wider economic uncertainty, but what’s evident from our research is that skills shortages are at an all-time high and hiring plans show no sign of slowing down. With organisations struggling to find the people they need, professionals are in a great position to negotiate better pay, benefits and flexible working in a new job. Speak to your specialist Hays recruiter who can negotiate on your behalf and help you take the next step in your career.
The rising cost of living and widespread skills shortages are both contributing to the salary increases we have seen across many roles over the last year. Some of the most in-demand skillsets are commanding 10-20% pay rises. Do your research – our online salary checker is a good place to start – and see what you could be earning.
The world of work is advancing at a rapid pace, which means you should be continuously upskilling to help futureproof your skillset. Being open to learning new skills is vital no matter what stage you’re at in your career – and being able to display this positive attitude to prospective employers can stand you in good stead given the ever-evolving skillsets organisations require. Check out My Learning, our online learning portal that offers courses to help you develop the skills you need to reach the next step in your career.
Given how difficult it is to find permanent staff, employers are much more open to hiring someone who does not have all the required skills and upskilling them in the role. If you’re thinking about making a sideways move in your career, now could be the right time to make that switch. Maybe you’re considering changing your career path entirely – for example, sustainability is a growing function within many organisations and employers are hiring individuals from different professions in order to build these functions. There are lots of job opportunities out there, so don’t miss out, take a look at our latest jobs today.
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Survey highlights
Employment outlook
Expert views
Benefits
Attracting talent
Discover salaries for accountancy and finance
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Productivity damaged by skills shortages
Top five most in-demand soft skills for employers
Communication and interpersonal skills
Ability to learn
Ability to adopt change
Coordinating with others
Flexibility and adaptability
40
To help alleviate current and future skills gaps, employers can broaden their hiring scope by considering professionals who may not possess all the necessary skills, but who demonstrate an openness to learning and can be upskilled.
Gaelle Blake UK&I Director of Permanent Appointments, Hays
Over the next 12 months, do employers expect their organisation’s performance will change?
55
6
Economic doubts but hope for performance
Just a third (33%) of employers are confident about the wider economic climate and potential employment opportunities over the next 2-5 years, down from two-thirds (66%) in 2021, and almost equal to the proportion who say they do not feel optimistic (32%). For more than half of employees (58%), this spills over into concern about the economy and potential opportunities for employment, although well over a third (38%) say they are not worried. Despite this long-term uncertainty, most employers (94%) expect their organisation’s performance to increase or stay the same in the coming 12 months, only a slight decrease from last year (97%).
Survey highlights for accountancy and finance
ACCOUNTANCY & FINANCE
Despite uncertainty surrounding the economic picture in the coming year, salaries continue to rise across the accountancy and finance sector, and competition for talent and skills remains tough. Increasing skills shortages necessitate effective recruitment approaches and considering different ways of hiring for potential rather than extensive prior experience on a CV. Organisations offering hybrid working options, a strong sense of purpose and competitive salaries can expect to have more chance of attracting top talent in the field.
Shortage of applicants predicted for year ahead
Discover salaries
expect their organisation’s performance to increase or stay the same over the next 12 months
plan on recruiting staff over the next 12 months
experienced skills shortages in the last 12 months
increased their employees’ salaries last year
Salaries continue to rise for majority
Salaries across the accountancy and finance profession have increased significantly, with 89% of employers raising pay in the last year, up from 64% last year. Rises have been substantial with professionals receiving an average pay increase of 6.5% over the last 12 months. However, salary rises are higher for roles where skills shortages are especially acute. As SMEs play catch up to large organisations in terms of salary, qualified accountants and in-house tax experts within SME organisations saw significant increases to their salary (9% and 8.5% respectively). Other roles receiving above average pay rises include those working within treasury, accountancy support and part-qualified accountancy roles, all of which saw average salary rises of 6.8% over the last year. While 32% of employees are dissatisfied with their current rate of pay, 86% of employers say they foresee raising salaries further in the next 12 months.
Discover accountancy and finance salaries
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Professionals drawn to better pay and prospects
There has been a slight increase in accountancy and finance professionals looking to change jobs. This year, 38% have moved jobs compared to 35% last year. A further 39% considered a change. Looking ahead, over half (53%) anticipate moving in the next 12 months, up from 47% last year. The most-cited reason for considering a move is the salary and benefits package (27%). Accountancy and finance professionals do not lack ambition, with the top reasons for leaving their last job given as a too low salary (32%), finding the role unfulfilling (23%), a lack of career development opportunities (22%) and lack of career progression (21%). Half of respondents (50%) said they would be tempted to move jobs for a better salary and benefits package
Top three reasons employees want to leave their current job
My salary and/or benefits package
Lack of future opportunities
The work itself
Top three factors that would tempt employees to move job
Better salary and/or benefits package
Future opportunities
More flexible working options
Hybrid working opportunities remain a draw for staff
Work-life balance remains top priority for accountancy and finance professionals when considering a new role, with 41% naming it the most important factor after salary. Well over half (59%) say they intend to find a new role that provides more of a mix of hybrid working in the next year. However, with almost three-quarters (74%) of employers now offering hybrid working, on a par with the UK overall (72%), nearly two-thirds of employees (61%) already see their work-life balance as above average, showing improvement on last year (57%). Indeed, the proportion of staff who would be tempted to change employers by the promise of choosing how many days a week they work in the office remains high (63%) although a slight decrease from last year (69%).
Strong purpose attracts top talent
Employees are drawn to companies with a strong sense of purpose, with 83% saying this is important to them when considering a new role. Just 3% find an organisation’s purpose entirely unimportant. Furthermore, almost three-quarters (74%) of accountancy and finance professionals value an organisation’s sustainability credentials, while a commitment to diversity and inclusion is attractive to more than two-thirds (68%) of professionals looking for a new employer.
Organisation’s purpose
Organisation’s commitment to sustainability
Organisation’s ability to demonstrate a diverse and inclusive culture
Factors that employees consider important when assessing a new role
94
90
89
are looking to move job in the next 12 months
give their work-life balance a positive rating
are dissatisfied with their current salary
say an organisation’s commitment to sustainability is important when assessing a new role
Top three expected external and internal challenges over the next 12 months
Economic environment
Talent retention
External challenges
Rising cost of living for staff
Managing change
Rising costs for businesses
Skills shortages within current teams
Internal challenges
What type of staff will employers be recruiting?
Permanent
64
Temporary
Almost two-thirds of respondents (63%) imagine they will face competition from other employers when it comes to taking on new staff in the year ahead. Other challenges posed to the hiring process include a shortage of suitable candidates which four in five respondents (81%) expect to face, a sharp rise from 67% who said the same last year.
Top three benefits important to employees:
Over 28 days of paid annual leave
43
Recruitment in the finance sector has been largely similar to other areas, where companies are facing the same challenges every business has faced throughout 2022: record salary levels, poor candidate availability and the impact of “The Great Resignation”. There is a growing desire for roles that offer hybrid and flexible working, and employers are learning to adapt to this demand with over 90% of roles posted on ICAEW Jobs offering some flexibility in working location. The rising cost of living is putting pressure on companies to increase salaries, and those who don’t will likely see staff leave and seek other employment opportunities paying a higher salary. In fact, PwC’s Global Workforce Hopes and Fears Survey 2022 found that more than one third of respondents plan to ask for a raise in the coming year and almost one in five UK workers (18%) are likely or extremely likely to switch jobs in the next 12 months.
Chartered Accountants remain in high demand and even with the changing world of finance this is highly unlikely to change any time soon. Different demands in skill sets are emerging including that of change management, which has seen an increase in roles on ICAEW Jobs of over 30%.
Claire Brandon
Head of ICAEW Jobs | ICAEW
The UK’s escalating cost-of-living crisis is leaving employees dealing with a real dilemma - it's a choice between a costly commute, either paying high fuel/public transport costs, or staying at home and dealing with high energy prices, whilst the increasing cost of food and essentials shows no sign of abating. While COVID-19 highlighted the importance of payroll in a period of uncertainty, the same can be said again for the cost-of-living crisis, which we are yet to see the full ramifications of. This has sparked a surge in employers looking to offer pay on-demand, as highlighted in our recent Future of Payroll 2022 report, published 6 September 2022. The data shows a 19% increase in employers exploring pay on-demand, compared to 2021, signalling continued efforts to support employees. This is in addition to wider moves such as pay rises, but we expect more innovative solutions to emerge as we approach winter.
Further to pay on-demand, 55% of employers in our report expected to see payroll becoming more involved in functions supporting employee well-being - such as HR. In the current climate, employee well-being is synonymous with personal finances. This is echoed in the data, with payroll professionals recognising their vital role in helping to soften the economic challenges for employees, both from an employee retention and attraction perspective. The findings of our report also highlighted how vital payroll data is in tracking and understanding employee finances, and how payroll can play a part in raising financial awareness among employees.
Vickie Graham DipM ACIM ACIPP
Business Development Director | Chartered Institute of Payroll Professionals
It appears that the UK – and indeed the world generally – never seems to be rid of one crisis before it dives headlong into another. Certainly, the last 12 months have been extraordinary by any measure, what with the end of the Pandemic, the start of the conflict in Ukraine, and the threat of a cost-of-living crisis. And never far away is the spectre of future insolvencies, as Government support packages begin to fade, and rising costs and supply chain issues begin to eat into profitability and disrupt cashflow. With uncertainty comes a reluctance for businesses to invest, and while the picture is far from universal – there are still plenty of strong, successful businesses out there – it would be wrong to underestimate the challenge ahead, which is why professional credit managers are still much in demand.
In recent months, we’ve seen the landscape for recruitment beginning to relax. Whereas there was undoubtedly a talent crisis earlier in the year, that situation appears to be calming, and roles being filled more easily than they were perhaps six or nine months ago. The most in demand are those with professional qualifications and training, since it is they who are best equipped to deal with the uncertainty that will continue for the foreseeable future. Experience also matters, and if there is one positive to come from the current challenges it is that credit managers will emerge with even greater resilience and fortitude to help steer their companies through the tricky months and years ahead. And they deserve to be recognised and rewarded for it.
Sue Chapple FCICM
Chief Executive | Chartered Institute of Credit Management
It has been another challenging year for the Accounts Payable Industry with teams returning to office based working environ-ments and others adopting hybrid/work from home patterns. We have seen an acceleration of automation projects to assist in some of the manual processes faced by AP teams. Organisations are continually looking for ways to improve the efficiency and stability of their functions. On a promising note we have seen increases in both salary levels and employment throughout 2022 which we hope will continue into 2023. As the AP/P2P industry continues to look at ways of automating we have seen a significant rise in analytical and project management skills required. The APA have supported this with the introduction of our brand new Education team and prospectus for 2023.
With lots of talk around skills shortages, AP professionals will need to continue to develop new ways of engaging and training core personnel. The APA have also invested in three new core products to assist the AP Industry. APAQ a best practice and continuous improvement accreditation, Enterprise Membership with skills-based training on demand and ACT an online team training assessment platform. We welcomed the return of face-to-face events in 2022 with a live summit and the largest AP Conference in the UK. As with previous years, 2023 will bring its own challenges as we look to adapt to new working environments and continue to combat the risk of fraud within our industry. Lastly, we would like to thank the amazing AP teams through-out the UK for their hard work, professionalism and literally keeping the lights on during these unprecedented times.
Jamie Radford
CEO | Accounts Payable Association
The treasury market is very buoyant at the moment, as treasurers are in high demand. In a context of ongoing COVID impact, Brexit, LIBOR transition and then geopolitical disruption and inflationary pressures, the treasurer really does sit at the heart of the financial and cash risks of an organisation. They are able to navigate these challenging times, and are proving invaluable to businesses across all sectors. The continuing requirement for leadership and influencing skills alongside technical expertise makes the profession even more interesting for those with ambition. As the Chartered body providing treasury qualifications, we have been including more and more leadership and management training within our courses, as we know these areas historically have proven the biggest blockers to career progression for treasurers. We also know that efficient working practices are a huge focus, and the treasurer
definitely needs to be technology-literate! Equally they need to understand the big issues discussed at the boardroom table – whether diversity and inclusion, ESG or cybercrime. Ways of working are changing, and the treasurer has shown they can work as effectively in the home office as in the traditional workplace. The trend towards hybrid working is here to stay, although organisations need to continue to evolve as there is not a one-solution-fits-all yet – we don’t know how much people’s preferences are a reaction (for example after being at home 24/7), or how much is now a kind of steady-state position. What is clear in all this is that treasurers are agile, and in demand!
Caroline Stockmann
Chief Executive | The Association of Corporate Treasurers
With the Central Bank of Ireland now laser-focussed on regulation, there is a particular demand for staff with compliance qualifications, such as the Professional Diploma in Compliance (LCI). The QFA Certificate in Professional Financial Advice and Chartered Financial Analyst (CFA) certifications are considered gold standard qualifications in the industry. In addition to their professional qualifications, new entrants will need good communication abilities and presentational skills, while displaying enthusiasm, motivation, a willingness to take responsibility, and a desire to self-educate and grow within an organisation. At middle management level, employers look for candidates who can build and manage teams effectively.
The majority of salary increases in the last year have been directed towards junior to mid-level candidates, and particularly those with ICAEW Chartered Accountant (ACA), and Association of Chartered Certified Accountants (ACCA) qualifications. To retain their existing staff, many employers have been offering development and promotional opportunities alongside other benefits, rather than notable salary increases. Senior level pay has remained competitive, but has not increased significantly. Counter offers in the sector are routine. Employers realise they cannot afford to lose skilled and qualified staff in the current climate, and particularly if they have financially supported their training and development.
Since the pandemic, the values and expectations of employees have changed in all sectors, and the banking and financial services industry is no exception. With demand for candidates dramatically outweighing supply, staff have been curious to explore their options over the last year. In the main, they are being attracted to employers who can offer them clear career progression paths, training and development opportunities, and hybrid-working environments. Employees in the sector are expected to continue to job-hunt — and move when the offer is right — in the year ahead.
Salary strategy
Employee mobility
Carrer plans
Karen Young Director – Accountancy & Finance, Hays
Uncertain
Positive
Negative
8
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Salary and/or benefits package
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Read more from leading organisations
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Hiring activity continues apace, with 62% of employers planning to recruit staff in the next 12 months in comparison to 60% last year. This may come as little surprise in the wake of 90% employers experiencing skills shortages in the last year, up from 80% in 2021. Productivity was seen to take the biggest hit as a result of these shortages, with almost half (49%) saying it was negatively impacted. Almost two-thirds of respondents (63%) imagine they will face competition from other employers when it comes to taking on new staff in the year ahead. Other challenges posed to the hiring process include a shortage of suitable candidates which four in five respondents (81%) expect to face, a sharp rise from 67% who said the same last year.
Communication and interper-sonal skills
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Hiring activity continues apace, with 62% of employers planning to recruit staff in the next 12 months in comparison to 60% last year. This may come as little surprise in the wake of 90% employers experiencing skills shortages in the last year, up from 80% in 2021. Productivity was seen to take the biggest hit as a result of these shortages, with almost half (49%) saying it was negatively impacted.
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Our profession has had to navigate exceedingly difficult territory during 2022, and that turbulence looks set to continue into the year ahead. Various factors, from fast changing monetary and fiscal policies to geopolitical instability, have contributed to a situation where we must address high inflation and disrupted supply chains, among other issues. This instability has had a serious impact on many organisations, and they have had to re-evaluate their business models and processes as a result. Employers need to know their finance team has the skills and knowledge to analyse every part of the business and provide high quality strategic counsel. That reassurance is provided by AICPA & CIMA’s CGMA designation, which is respected by employers around the
world. Finance professionals who are beginning their careers will find the rigorous CGMA learning is excellent preparation for dealing with modern business challenges. The pace of technological advance means that the profession is changing more rapidly than at any time in history. I cannot emphasise enough the importance of keeping your skills up to date as you build your career. New technologies and techniques represent a great opportunity for those willing to master them, and that will become truer with every passing year.
Andrew Harding, FCMA, CGMA
Chief Executive — Management Accounting | Association of International Certified Professional Accountants, representing AICPA & CIMA
It appears that the UK – and indeed the world generally – never seems to be rid of one crisis before it dives headlong into another. Certainly, the last 12 months have been extraordinary by any measure, what with the end of the Pandemic, the start of the conflict in Ukraine, and the threat of a cost-of-living crisis. And never far away is the spectre of future insolvencies, as Government support packages begin to fade, and rising costs and supply chain issues begin to eat into profitability and disrupt cashflow. With uncertainty comes a reluctance for businesses to invest, and while the picture is far from universal – there are still plenty of strong, successful businesses out there – it would be wrong to underestimate the challenge ahead, which is why professional credit managers are still much in demand. In recent months, we’ve seen the landscape for recruitment beginning to relax. Whereas there was undoubtedly a talent crisis earlier in the year, that situation appears to be calming, and roles being filled more easily than they were perhaps six or nine months ago. The most in demand are those with professional qualifications and training, since it is they who are best equipped to deal with the uncertainty that will continue for the foreseeable future. Experience also matters, and if there is one positive to come from the current challenges it is that credit managers will emerge with even greater resilience and fortitude to help steer their companies through the tricky months and years ahead. And they deserve to be recognised and rewarded for it.
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Discover salaries for business support
Competition for talent driving skills shortages
Skills shortages continue to pose a threat to the industry. This year, 88% of employers have faced a lack of skills to some extent, an increase from 84% in 2021. Employee morale has been the area worst impacted by skills shortages (57%), followed by productivity (49%). Employers cite competition for talent from other organisations as the main cause of skills shortages (61%).
Problem-solving
Hiring plans show no sign of abating in the face of ongoing skills shortages. Recruitment will be especially busy for customer services professionals as organisations place more emphasis on the customer experience and retaining business.
Roddy Adair Director – Business Support, Hays
Organisational performance steady in the year ahead
More than half (55%) of employers predict their business performance will increase in the next year. However, this represents a slight drop from 2021 (60%). A further 41% of employers predict their organisation’s performance will remain the same. Slightly more business support employers are optimistic (37%) than pessimistic (30%) about the wider economic climate and the employment opportunities it may create in the next 2-5 years. However, professionals do not share their employers’ positivity, with 71% expressing concern about the long-term economic climate and its impact on employment opportunities in the next 2-5 years.
Survey highlights for business support
BUSINESS SUPPORT
Skills shortages continue to plague the industry, accelerating recruitment and driving up salaries. Employers must continue to respond to staff priorities with steady pay increases, consideration for work-life balance and demonstration of a strong organisational purpose to succeed in overcoming skills challenges.
Employers face competition for specialist skills
Salary increases not enough to fully satisfy staff
The last 12 months have seen salaries rise for significantly more employees than in the year before. 81% of employers increased salaries for their staff over the last year compared to 53% in 2021. More than three-quarters (76%) plan to further increase pay in the year ahead, up from 59% last year. Salaries for business support roles increased by an average of 6% in the last year. These rises are being driven primarily within business support roles, especially for specialist skillsets, which often prove difficult to find, such as within office management and administration roles. There is also strong demand for customer services professionals, especially at mid-management level, driven by the rise in customers turning to digital channels to raise queries. Employers are therefore more willing to offer higher salaries to professionals with digital skillsets as well as those with a strategic mindset given the increasing complexity of customer queries. Despite pay increases, 42% of business support employees are not satisfied with their current salary.
Discover business support salaries
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Professionals seek better salary and benefits
40% of business support professionals changed jobs over the last year, a decrease from 47% the year before. The main reason to move job was due to a salary that was too low (27%). Looking ahead, almost two-thirds (63%) of professionals plan to move jobs in the next 12 months, an uplift from 57% last year. A more favourable salary and benefits package is the main reason employees want to make a move (26%), followed by a lack of future opportunities (13%). For those not planning to move in the next year, half (50%) would be tempted to do so for an organisation that offered a better salary and benefits package.
Concerns about job security
Work-life balance is a key priority
Maintaining a positive work-life balance is a big priority for business support professionals, with 59% rating their current work-life balance as above average and almost a third (31%) saying it is the most important factor for them when looking for another role, excluding salary. Being able to work in a hybrid way is also important to business support employees. While most organisations offer hybrid working to their business support staff (69%), professionals want more flexibility. 65% would be tempted to change employers if they could choose how often they’re in the workplace, and of those planning a career change this year, 53% plan to seek a role with more of a mix of hybrid working.
Professionals seeking purpose, sustainability and a diverse and inclusive culture
An organisation’s purpose could be a key differentiator for business support professionals on the move, with 86% deeming it important when considering a new role, on a par with the proportion who thought the same last year (87%). Employees also look out for an organisation’s commitment to sustainability when looking for a new role, with 81% saying this is important to them. Furthermore, more than two thirds (68%) say that an organisation’s ability to demonstrate a diverse and inclusive culture influences their decision to apply for a new role.
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Employers look set to continue hiring, with 79% intending to recruit in the next 12 months, up slightly from 77% last year. Hiring plans are stronger for customer services professionals (87%) than office administration professionals (77%). However, most employers across the business support industry (71%) expect to face a shortage of suitable applicants in the next year, an increase from 67% last year.
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Discover salaries for construction and property
Purpose and sustainability attractive prospects to potential staff
Four in five construction and property professionals (81%) consider an organisation’s purpose as important when assessing a new role. An organisation’s green credentials also play a part, with three-quarters (75%) of professionals citing an organisation’s commitment to sustainability as important. 58% of professionals also look out for a diverse and inclusive culture when considering a new role.
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Employers address calls for hybrid working options
Aside from salary, top priorities for professionals when considering a new role are a positive work-life balance (24%) and job security (21%), just as they were last year. Employers seem to have taken this feedback on board, with 56% now offering hybrid working - up from 43% last year, while another 13% say it is under review. Offering hybrid working has increased staff retention, according to over a third (36%) of employers. Furthermore, most employees (87%) rate their current work-life balance as average or above. A quarter (25%) of employers are not offering hybrid working options. While fully remote working is not possible for certain roles within the industry, introducing an element of hybrid working can be advantageous when hiring. Over a third (36%) of professionals actively plan to seek out a role that offers more of a mix of hybrid working in the next 12 months.
Find a new role that is more office/site-based
Salary and location key drivers for job moves
In the last year, 47% of employees have changed roles, while a further 31% have considered it. The most cited reason by employees for moving on was low salary (27%), followed by a lack of job fulfilment (21%) and a long commute (17%). Both salary (27%) and location (16%) play a role in current job satisfaction as the most popular reasons for employees wanting to leave their current roles. Well over half (58%) plan to change roles in the next 12 months, an increase on 52% last year. For those not planning a move, a better salary and benefits package could tempt 46% to do so.
Significant salary increases
More employers have increased salaries this year than last, with 81% increasing in 2022 compared to 60% in 2021 and pay within the construction industry rose by an annual average of 4.4%. This average wage rise has been tempered somewhat as employers balance the impact of inflated costs of materials across the sector. However, the demand for certain niche skillsets across the sector means for some roles pay has increased by a higher amount. The focus being placed on the retrofitting and decarbonisation of buildings means that employers must ensure they’re investing in upskilling and reskilling professionals so they’re better able to adapt to the skills needs of the future. Most employees are either satisfied or very satisfied with their salaries (65%), whilst over a third (35%) are less satisfied. There may however be greater satisfaction scores on the horizon, as three-quarters (75%) of employers in the industry plan to increase pay in the coming 12 months.
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Discover construction and property salaries
Skills shortages intensify even further
Even more employers in the sector (95%) faced skills shortages this year, an increase from 92% last year. This has negatively impacted productivity (54%), the ability to deliver projects (40%) and employee morale (38%). The main perceived cause of skills shortages is competition for talent from other employers (61%), followed by fewer people entering the construction industry (54%).
Perhaps as a result, 82% of employers intend to recruit in the next year, presenting almost no change from last year (83%). Their main concern (72%) is a shortage of suitable applicants, although they also expect applicants to have unrealistic salary requirements (60%, a significant increase from 50% last year) and to face competition from other employers (59%).
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Survey highlights for construction and property
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Activity rates even out following post-lockdown peak
Activity looks set to plateau in the construction and property industry following an especially busy post-lockdown period. Over half (57%) of employers see their organisation’s performance increasing in the next 12 months, a decrease from 71% at the same point last year. Meanwhile, the proportion of employers expecting activity to remain the same is up 10% on last year, with 37% now predicting minimal change compared to 27% last year. Under half (46%) of employers feel optimistic about the wider economic climate and employment opportunities in the next 2-5 years, while almost two-thirds (62%) of employees are concerned by the situation.
There are no signs of a slowdown within the construction industry, with demand being driven by a substantial increase in commercial industrial projects, ongoing infrastructure developments and the low-carbon retrofitting of buildings and social housing.
Gaelle Blake Director - Construction & Property, Hays
CONSTRUCTION & PROPERTY
Higher salaries and the flexibility to work where is convenient are consistent priorities for the construction and property workforce. In the last year employers have heard their calls, with pay rises and increasing hybrid working options. A commitment to sustainability could further help employers attract significant numbers of candidates planning a move in the year ahead.
Employees see improvements to salary and flexibility
Economic enviroment
Top three benefits important to employees
Company car or car allowance
The role of the occupational safety and health professional has never been more important. Throughout the COVID-19 pandemic, they enabled work to keep going across all sectors worldwide. Now they’re sustaining safe, healthy and beneficial work in the face of economic pressures and unrest affecting workers and communities everywhere. Members of the profession’s global Chartered body, the Institution of Occupational Safety and Health (IOSH), say they’re more valued and appreciated than ever. Median salaries have increased across all levels of the profession by 8% since 2017 and demand is high. If work protects and fulfils people, we know it’s powerfully beneficial. OSH professionals have the skills and experience to prevent harm at work and ensure it is good, safe, healthy and productive.
IOSH’s Competency Framework and the continuing professional development it supports in its members is actively answering the sector’s skills needs. Only around one in six OSH professionals is under 35, so there is huge opportunity and a pressing need to attract and nurture new talent. IOSH members report that the pandemic has raised awareness of the importance of mental health and deepened their professional capabilities. In 2022, the International Labour Organization (ILO) adopted a safe and healthy work environment as one of one of its five fundamental principles and rights at work. This official agreement and advocacy by IOSH and others should drive demand for better work and raise standards worldwide.
Nicole Rinaldi
Director of Professional Services | Institution of Occupational Safety and Health
Civil engineers form part of a construction workforce of 3.1 million, delivering £166.7Bn worth of projects in 2022 alone. The sector remains a stimulant to the UK economy, attracting significant national and international investment. 9 percent of the UK workforce is employed in the sector, which in turn generates 8 percent of UK GDP. The Universities and College Admission Service reported a seventh consecutive year of increased applications to study civil engineering at bachelors and masters’ level. The government’s commitment to offering an apprenticeship to all 16-18-year-olds provides the confidence that the vocational sector requires to close the skills gap. Civil engineering continues to promote diversity and inclusion. At 16.6%, it boasts the highest proportion of females employed within engineering. Minority ethnic engineers stand at 24%, twice that of the ONS national figure (12.6%).
Employers seek those who are professionally qualified (Technician, Incorporated and Chartered status). The Building Safety Act 2022 has reinforced an expectation that civil engineers should possess a professional qualification as a demonstration and commitment to the highest levels of excellence. To achieve this outcome, the Institution of Civil Engineers provides unique support towards attaining, helping professionals to realise their potential. Civil engineers are uniquely placed to tackle and resolve many of the great challenges that we face. From building a sustainable world that secures energy supply and mitigates the impact of climate change, to building the housing, schools and transport that we all rely on.
Director of Membership Marketing | Institution of Civil Engineers
Seán P F Harris
Architectural Technology as a discipline is critical to lead, drive and evolve change within the built environment and push the boundaries in varying sectors. There appears to be a distinct shortage of Architectural Technology professionals in the UK and globally, so the changing landscape in academia and growth in apprenticeships, should lead to progressive change within the market. Employers are receptive to a hybrid working model in line with most other industries to ensure the best talent is acquired and retained within the sector. With the Building Safety Bill gaining Royal Assent, once in a generation integral change to cross industry practices will be required to ensure compliance with the Golden Thread initiative. These changes should ensure that the failures that led to the Grenfell Tower disaster are consigned to history. Chartered Architectural Technologists are ideally placed
placed to fulfil the role of Principal Designer and CIAT is positioned to facilitate an accredited Register to ensure compliance with the Act. It is also important to recognise that as the profession and sector continues to change and respond to the challenges it faces such as climate change, specialisms will become ever more prevalent. Diversification will enable our members, affiliates and stakeholders to provide services for the benefit of society and to create and maintain communities for people to live, work and enjoy.
Francesca Berriman MBE
Chief Executive | Chartered Institute of Architectural Technologists
say an organisation’s commitment to sustain-ability is important when assessing a new role
There are no signs of a slowdown within the construction industry, with demand being driven by a substantial increase in commercial industrial projects, ongoing infra-structure developments and the low-carbon retrofitting of buildings and social housing.
Karen Young Director – Construction & Property, Hays
Hiring activity continues apace, with 62% of employers planning to recruit staff in the next 12 months in comparison to 60% last year. This may come as little surprise in the wake of 90% of employers experiencing skills shortages in the last year, up from 80% in 2021. Productivity was seen to take the biggest hit as a result of these shortages, with almost half (49%) saying it was negatively impacted. Almost two-thirds of respondents (63%) imagine they will face competition from other employers when it comes to taking on new staff in the year ahead. Other challenges posed to the hiring process include a shortage of suitable candidates which four in five respondents (81%) expect to face, a sharp rise from 67% who said the same last year.
There has been a slight increase in accountancy and finance professionals looking to change jobs. This year, 38% have moved jobs compared to 35% last year. A further 39% considered a change. Looking ahead, over half (53%) anticipate moving in the next 12 months, up from 47% last year. The most-cited reason for considering a move is the salary and benefits package (27%). Accountancy and finance professionals do not lack ambition, with the top reasons for leaving their last job given as a too low salary (32%), finding the role unfulfilling (23%), a lack of career development opportunities (22%) and lack of career progression (21%). Half of respondents (50%) said they would be tempted to move jobs for a better salary and benefits package.
Organisation's purpose
Organisation's ability to demon-strate a diverse and inclusive culture
Organisation's commitment to sustainability
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It has been another challenging year for the Accounts Payable Industry with teams returning to office based working environ-ments and others adopting hybrid/work from home patterns. We have seen an acceleration of automation projects to assist in some of the manual processes faced by AP teams. Organisations are continually looking for ways to improve the efficiency and stability of their functions. On a promising note we have seen increases in both salary levels and employment throughout 2022 which we hope will continue into 2023. As the AP/P2P industry continues to look at ways of automating we have seen a significant rise in analytical and project management skills required. The APA have supported this with the introduction of our brand new Education team and prospectus for 2023. With lots of talk around skills shortages, AP professionals will need to continue to develop new ways of engaging and training core personnel. The APA have also invested in three new core products to assist the AP Industry. APAQ a best practice and continuous improvement accreditation, Enterprise Membership with skills-based training on demand and ACT an online team training assessment platform. We welcomed the return of face-to-face events in 2022 with a live summit and the largest AP Conference in the UK. As with previous years, 2023 will bring its own challenges as we look to adapt to new working environments and continue to combat the risk of fraud within our industry. Lastly, we would like to thank the amazing AP teams through-out the UK for their hard work, professionalism and literally keeping the lights on during these unprecedented times.
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The treasury market is very buoyant at the moment, as treasurers are in high demand. In a context of ongoing COVID impact, Brexit, LIBOR transition and then geopolitical disruption and inflationary pressures, the treasurer really does sit at the heart of the financial and cash risks of an organisation. They are able to navigate these challenging times, and are proving invaluable to businesses across all sectors. The continuing requirement for leadership and influencing skills alongside technical expertise makes the profession even more interesting for those with ambition. As the Chartered body providing treasury qualifications, we have been including more and more leadership and management training within our courses, as we know these areas historically have proven the biggest blockers to career progression for treasurers. We also know that efficient working practices are a huge focus, and the treasurer definitely needs to be technology-literate! Equally they need to understand the big issues discussed at the boardroom table – whether diversity and inclusion, ESG or cybercrime. Ways of working are changing, and the treasurer has shown they can work as effectively in the home office as in the traditional workplace. The trend towards hybrid working is here to stay, although organisations need to continue to evolve as there is not a one-solution-fits-all yet – we don’t know how much people’s preferences are a reaction (for example after being at home 24/7), or how much is now a kind of steady-state position. What is clear in all this is that treasurers are agile, and in demand!
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Discover salaries for human resources
Professionals seek purpose, a diverse and inclusive culture and a commitment to sustainability
For two years in a row, 89% of HR professionals place high value on an organisation’s purpose when considering a new role. Only 1% see such purpose as entirely unimportant. A further 82% would want any potential employer to demonstrate a diverse and inclusive culture, while 79% appreciate a strong commitment to sustainability.
Hybrid working remains a priority
Most HR employees (69%) say their work-life balance is above average, and a positive work-life balance remains the most important factor - aside from salary - for 43% when they are seeking a new role. Four in five HR employers (80%) are now offering hybrid working to their HR staff. This has resulted in improved staff retention according to 43% of employers. Being able to work in a flexible working pattern remains important to HR professionals, with 62% planning to find a new role in the next 12 months which can offer them a greater mix of hybrid working. Furthermore, 67% would be tempted to change to an employer that allowed them to choose how often they’re in the workplace.
Pay and job fulfilment prompting moves
For the second year in a row, almost half (45%) of HR professionals moved jobs in the preceding 12 months. A further 37% considered moving on. The main reason for leaving was a salary that was too low (27%) but finding the job unfulfilling was also a factor for almost a quarter (24%). In the coming year, 61% plan to leave their jobs, an increase from 53% in 2021. The main reason for wanting to change jobs is to pursue improved salary and benefits (36%), which would tempt 46% of employees to seek work elsewhere.
Salaries continue to rise
81% of employers have increased pay this year compared to 59% in 2021, and 76% expect to increase salaries again in the next 12 months. HR pay rose by an average of 5.4% over the last year, however for certain in-demand roles, pay increased above this average. Widespread skills shortages and strong hiring plans across many industries means recruitment and resourcing roles are in particularly high demand and saw an average pay rise of 9.4%. Reward specialists are also highly sought after, as organisations review how best to reward and support their staff with more innovative and tailored remuneration and benefits packages. Equity, diversity and inclusion is high on the agenda for organisations both large and small, driving pay rises of up to 7.9% for ED&I professionals. The need for better informed HR decision making is also causing strong demand for HRIS and HR technology experts. Most employees (63%) are satisfied with their current rate of pay, although this is a slight drop on last year (69%).
Discover human resources salaries
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Increasing recruitment in the face of skills shortages
More employers say they have experienced skills shortages when hiring HR professionals in 2022 (88%) than 2021 (85%). Employee morale within the HR profession continues to be most negatively affected by skills shortages, according to 54% of employers - the same proportion as last year. The main causes of skills shortages include competition from other employers (66%), fewer people entering the HR profession (32%) and a lack of progression opportunities (31%).
Meanwhile hiring plans are accelerating, with 88% planning to recruit HR staff in the next year, up from 85% last year. Almost three-quarters (73%) of employers anticipate a shortage of suitable applicants when hiring in the next year and 65% expect to face tough competition from other organisations.
People management
Concerns tempered by activity increase
62% of employers expect their organisation’s performance to increase in the year ahead, a slight decrease from last year (68%). A further 30% expect their organisation’s performance to remain the same in the next 12 months. Caution about the wider economy is affecting sentiments about long-term opportunities across most professions and industries and HR is no exception. Only 37% of HR employers are optimistic about the wider economic climate and employment opportunities over the next 2-5 years, down from 70% in 2021. Similarly, 62% of employees are actively concerned about these issues, up from 44% last year.
Survey highlights for HR
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Employers of HR professionals continue to struggle with a shortage of skills. Competition remains high for those with the niche skillsets and expertise that will support successful people strategies in 2023.
Yvonne Smyth Director – HR, Hays
HUMAN RESOURCES
Salaries have continued to rise in the HR sector, and employees are increasingly looking for competitive pay deals when considering new roles. Employers who can boost morale and a feeling of job fulfilment will retain any employees thinking of moving on, while a flexible working pattern and strong sense of purpose could help attract new talent.
Competitive salaries key to attracting talent
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Company culture
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More employers say they have experienced skills shortages when hiring HR professionals in 2022 (88%) than 2021 (85%). Employee morale within the HR profession continues to be most negatively affected by skills shortages, according to 54% of employers - the same proportion as last year. The main causes of skills shortages include competition from other employers (66%), fewer people entering the HR profession (32%) and a lack of progression opportunities (31%). Meanwhile hiring plans are accelerating, with 88% planning to recruit HR staff in the next year, up from 85% last year. Almost three-quarters (73%) of employers anticipate a shortage of suitable applicants when hiring in the next year and 65% expect to face tough competition from other organisations.
81% of employers have increased pay this year compared to 59% in 2021, and 76% expect to increase salaries again in the next 12 months. HR pay rose by an average of 5.4% over the last year, however for certain in-demand roles, pay increased above this average. Widespread skills shortages and strong hiring plans across many industries means recruitment and resourcing roles are in particularly high demand and saw an average pay rise of 9.4%. Reward specialists are also highly sought after, as organisations review how best to reward and support their staff with more innovative and tailored remuneration and benefits packages. Equity, diversity and inclusion is high on the agenda for organisations both large and small, driving pay rises of up to 7.9% for ED&I profes-sionals. The need for better informed HR decision making is also causing strong demand for HRIS and HR technology experts. Most employees (63%) are satisfied with their current rate of pay, although this is a slight drop on last year (69%).
Discover salaries for legal
Purpose, inclusion and sustainability important to professionals
Ethical organisations can hope to entice more legal professionals to work for them, as purpose, diversity and sustainability are important values to most employees when seeking a new role. An organisation’s purpose is a priority for 81% of staff, while a commitment to a diverse and inclusive culture is not far behind, named by 79% as important. For just under three-quarters (73%), an organisation’s commitment to sustainability could be a deciding factor when applying for a job.
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Hybrid working options could tempt employees to move
Work-life balance is the most important factor, aside from salary, for a third (33%) of employees when considering a new role. Meanwhile 54% plan to find a role with a greater hybrid working element in the next 12 months. Four-fifths (81%) of organisations asked currently offer hybrid working, and a further 10% are reviewing the possibility. More than half (59%) of professionals within the legal profession could be tempted to change employer by the promise of fully flexible hybrid working patterns, allowing them to choose how many days they’re in the workplace.
Company secretarial staff moving for better pay
62% of company secretarial employers plan to hire permanent staff in the year ahead, an uplift from 57% last year. A further 39% expect to hire temporary staff in the next 12 months, an increase from 36% who planned to do so in 2021. 47% of company secretarial professionals plan to change jobs in the year ahead, a slight increase from last year (45%). For those expecting to change jobs in the next 12 months, their salary and benefits package is the main driver for doing so (29%). For those not planning on changing jobs in 2023, almost a third (32%) of professionals could be tempted to move if they were offered a better salary and benefits package. Pay increased by an average of 4.8% for company secretarial staff over the last year, driven largely by salary rises for junior level professionals.
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Discover company secretarial salaries
There’s a positive employment outlook for company secretarial professionals in the year ahead. Employers must strike the right the balance between pay, benefits and hybrid working options to be successful in their recruitment plans.
Yvonne Smyth Director – Legal & Company Secretarial, Hays
Career ambition causing employee movement
There has been plenty of movement within the sector in the last year, with 40% of employees moving jobs, while 47% considered a move. A lack of career progression (34%) or development opportunities (26%) were the main motivators for leaving jobs. 60% of legal professionals expect to move jobs in the next year, with 40% planning to do so in the next six months. A better salary and benefits package is cited as the main reason for moving on (31%), as well as a lack of future opportunities (21%). These factors also rank highly for those not planning on changing jobs in the next year, with 39% admitting they could be tempted to make a move for a better salary and pay package. A further quarter (25%) would be tempted by better career opportunities, an increase from 19% last year.
Opportunity to work fully remotely
Salaries are up but satisfaction is down
In the last 12 months, 85% of employers increased their workforces’ salaries, a significant jump from 57% who did so in 2021. Over the year ahead, 76% of employers foresee upping salaries further, in comparison to just 53% last year. Salaries across the legal profession increased by an average of 7.4% over the last year, driven by a combination of a shortage of candidates and the rising cost of living. Demand for junior and mid-level professionals is particularly high, causing more pronounced salary increases at these levels. There is also greater hiring demand for paralegals, as law firms look to combine service and efficiency by building and deploying teams with the right levels of resource and expertise. The continued year-on-year escalation of salaries for junior roles within the legal profession is not necessarily mirrored at the more experienced mid and senior levels. This is contributing to a decline in salary satisfaction, with just 56% of legal professionals saying they are happy with their pay compared to 64% in 2021.
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Increasing skills shortages threaten morale
Skills shortages continue to increase with 97% of employers having experienced them, a significant increase from 84% last year. As per last year, this is having an adverse effect on employee morale (62%) and productivity (48%).
More than four in five employers (82%) intend to hire new staff in the next 12 months but are apprehensive about competition from other employers and a shortage of suitable applicants (both 68%), as well as unrealistic salary requirements from applicants (66%).
Critical thinking
Judgement and decision-making
Activity to continue on an even keel
Expectations of activity in the next year are largely unchanged from 2021, with just slightly fewer employers (61%) this year predicting an increase in their organisation’s performance than last year (65%). A further third (33%) expect performance rates to remain the same, presenting almost no change from last year (32%). However, only just over a third (37%) of employers are optimistic about the wider economic climate, a decrease from 66% last year. Almost two-thirds of employees (64%) expressed concern over their prospects in the next 2-5 years, compared to last year’s figure of 46%.
Survey highlights for legal
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While pay remains a key driver for employee movement within the legal profession, opportunities for career progression and development often tip the balance between whether an individual chooses one role over another.
LEGAL
Although salary remains a crucial driver for legal professionals to change role, they also actively seek more career progression and development opportunities. Despite more widespread hybrid working schemes, employees continue to seek even more flexibility when moving roles. They’re also keen to see that their potential employer is committed to instilling strong values.
Ambitious professionals look beyond rising salaries
Company Secretarial
Although salary remains a crucial driver for legal professionals to change role, they also actively seek more career progression and development opportunities. Despite more widespread hybrid working schemes, employees continue to seek even more flexibility when moving roles. They’re also keen to see that their potential employer is committed t instilling strong values.
Skills shortages continue to increase with 97% of employers having experienced them, a significant increase from 84% last year. As per last year, this is having an adverse effect on employee morale (62%) and productivity (48%). More than four in five employers (82%) intend to hire new staff in the next 12 months but are apprehensive about competition from other employers and a shortage of suitable applicants (both 68%), as well as unrealistic salary requirements from applicants (66%).
Oorganisation’s commitment to sustainability
organisation’s ability to demon- strate a diverse and inclusive culture
Discover salaries for life sciences
Clear sense of purpose makes organisations competitive
Most employees (89%) rate an organisation’s purpose as important when sizing up a potential future employer. Three-quarters (75%) of professionals value an organisation’s commitment to sustainability when considering a new role, and a further 71% say a diverse and inclusive culture would influence their choice of job.
Hybrid working a strong draw for candidates
Career development opportunities are the most enticing aspects of a new job, aside from pay, according to 29% of professionals. Work-life balance is the second most valued element, appealing to 20% of employees. Just 10% of professionals rate their existing work-life balance as below average, with 84% of employers offering hybrid working options to staff. However, 70% of staff would be tempted to change employer by the prospect of a fully flexible approach to hybrid working, where they can choose how often they’re in the workplace. Furthermore, 63% of employees plan to seek a role with a better mix of hybrid working in the next 12 months.
Employees looking for better pay and career opportunities
In the last year, 37% of life sciences professionals have moved jobs, and a further 43% considered doing so. 68% expect to move jobs in the next year, with 49% planning to do so in the next six months. Salary and benefits are the main reason employees want to move jobs (39%), followed by a lack of future opportunities in their current organisation (26%). Of those professionals not planning on changing job in the next year, 36% could be tempted to do so for a better salary and benefits package, or for future career opportunities (28%).
Salaries set to rise further
The last 12 months have seen 79% of life sciences salaries increase, compared to just 59% last year. Pay rose across the industry by an average of 3.3%, however, some niche skillsets and positions received bigger salary increases. For example, pay for scientific roles increased by an average of 4.9% over the last year, driven by greater investment and growth within biologics and continued competition for lab managers and technicians within Covid labs. There is also strong demand within bioinformatics as employers compete for data scientists and machine learning scientists from both inside and outside the industry. Despite pay rises, two-fifths (41%) of professionals are unsatisfied with their salary, presenting almost no change from last year (43%). Looking ahead, 83% of employers plan to increase salaries again in the next year.
3.3
Discover life sciences salaries
Skills shortages spur recruitment
Skills shortages have been experienced by 97% of life sciences employers in the last year, an increase from 88% who faced the challenge last year. The areas most negatively affected by skills gaps has been employee morale (59%), closely followed by productivity (56%) and the ability to deliver projects (50%).
Slightly more employers intend to recruit in the coming year (88%) in comparison to 86% last year, with a focus primarily on hiring permanent staff (79%). However, hiring challenges are anticipated. 78% expect to face competition from other employers when recruiting in the next year, a significant rise from 69% who said so last year.
Activity levels decrease following pandemic peak
Employer confidence is down slightly on last year, with 61% expecting their organisation’s performance to increase in the coming 12 months, compared to 72% last year. Indeed, 12% foresee activity decreasing, compared to just 1% in 2021. Only 26% of employers are pessimistic about the wider economic climate and long-term employment outlook. On the other hand, 69% of employees are concerned about their employment opportunities in the next 2-5 years.
Survey highlights for life sciences
There has been a significant rise in employers experiencing skills shortages, and competition for talent is set to remain high in 2023. Organisations that promote career development opportunities as well as a strong purpose will stand out from the crowd when hiring.
Chris Smith Director – Life Sciences, Hays
LIFE SCIENCES
Employers will be looking to attract talent and increase salaries in the coming year, amid widespread skills shortages and low satisfaction with rates of pay. A strong CPD offering will help organisations stand out from the pack in a competitive hiring market.
New talent needed to plug skills gaps
Training/professional certification support
There has been a significant rise in employers experienc-ing skills shortages, and competition for talent is set to remain high in 2023. Organisations that promote career development opportu-nities as well as a strong purpose will stand out from the crowd when hiring.
Discover salaries for personal and executive assistants
Sustainable values, strong purpose and an inclusive culture will attract talent
There are several other factors that PAs and EAs look for in a new job. For example, almost nine in ten professionals (89%) value an organisation’s commitment to sustainability when considering a new role, as well as wanting to work at an organisation with a strong purpose (also 89%). An organisation that can demonstrate a diverse and inclusive culture can also influence most PAs and EAs when considering a new job (76%).
Work-life balance top priority for professionals
A positive work-life balance is deemed the most important factor, aside from salary, by half (50%) of PAs and EAs when considering a new role, an uplift from 39% who said the same last year. Over half (54%) of PAs and EAs rate their work-life balance positively. Over two-thirds (69%) of organisations currently offer hybrid working to their staff, which may help them entice more talent, as 56% of employees planning a career change in the year ahead want to find a role with more of a mix of hybrid working. A flexible approach to hybrid working can also help employers secure PAs and EAs, as 70% say they could be tempted to change employer if they could choose how often they’re in the workplace.
Professionals spurred to move for the right pay and benefits package
Over a third (36%) of PAs and EAs moved jobs in the last 12 months, while a further 40% considered doing so. The most cited reason for leaving was the salary being too low (32%). There has been a decrease in EAs and PAs planning to move jobs over the next 12 months, with 43% expecting to move, down from 50% last year. Salary and benefits package is the main reason employees want to leave their current role (29%) followed by a lack of future opportunities (17%). Of those who aren’t planning on changing jobs this year, nearly three-quarters (74%) could be tempted to do so for an improved pay and benefits package.
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The workload
Need for specialist skillsets driving pay increases
Most employers (81%) increased their employees’ salaries over the last year, significantly more than had intended to (62%). Looking ahead, three-quarters (75%) expect to increase salaries again in the next year. Salaries for PAs and EAs increased by an average of 2.9% over the last year, an increase from 2.3% the year before, but below the overall UK average of 5.4%. During the emergence of the Covid-19 pandemic, whilst skills requirements changed, and responsibilities increased for many PAs and EAs, pay hasn’t always kept up with these trends. Professionals are more commonly being tasked with operational, HR, health and safety, finance and marketing roles, which is resulting in pay increases to reflect this breadth of responsibilities. This is especially evident for secretaries and non-board level PAs. Employers are also more willing to pay higher salaries to find and secure EAs with specialist skillsets. Well over a third (39%) of employees are dissatisfied with their salary, up from 31% last year, although the majority (61%) remain happy with their pay.
2.9
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Rising skills shortages hit morale
An increasing number of employers have encountered skills shortages over the last year. The proportion reporting some level of shortages was 89%, up from 83% the year before. The shortages have impacted employee morale above all else (56%). According to employers, the main causes of skills shortages include competition from other employers (60%), fewer people entering the PA and EA profession (37%) and a lack of progression opportunities (24%).
More than three-quarters (78%) of employers are planning to hire staff in the coming year. However, 71% of employers expect to encounter a shortage of suitable applicants when hiring in the next year and a further 56% expect competition from other employers.
Over the next 12 months, do employers expect their organisation’s performance to change?
Economic climate fuels concern
Over half (55%) of employers expect their organisation’s performance to increase in the next 12 months, while a further 41% think performance will stay the same, an increase from 35% last year. However, optimism about the wider economic climate has waned, with only 39% of employers feeling positive about prospects, down significantly from 64% in 2021. Meanwhile, the number of PAs and EAs concerned about their employment opportunities in the next 2-5 years has risen, hitting 69% this year compared to 59% last year. However, this represents an improvement from 2020, when 85% voiced concerns.
Survey highlights for personal and executive assistants
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PAs and EAs have taken on more responsibilities in recent years, but upskilling support and pay haven’t necessarily kept up with this trend, having a detrimental impact on employee morale. Organisations that invest in training and development will therefore be better placed to attract and retain the best individuals
PERSONAL AND EXECUTIVE ASSISTANTS
Despite some concern in the industry about the economic climate, organisations continue to face widespread skills shortages and waning morale amongst staff. In order to secure the PAs and EAs with the most in-demand specialist skillsets, employers must ensure their offer to prospective job candidates hits the mark in terms of pay, benefits and a positive work-life balance.
Positive work-life balance key to employee retention
The job market for Executive Assistants (EAs) and Personal Assistants (PAs) continues to be buoyant, with organisations realising the importance of highly-skilled and professional support staff. Certainly, within the EA sector, the pandemic of 2020/2021 provoked a ‘refresh’ when considering how EAs and PAs add wider value to their organisations and, in many ways, empowered job-holders to be more suggestive in the way that they felt their role could contribute. For instance, EAs generally now have more independence and autonomy – which includes them taking the lead on company-wide initiatives, as well as supporting a team or boss. Their role is enhanced by project work, which builds inherent skills of influence, collaboration and commercial awareness – as well as profiling the EA role in their firm.
More EAs are also taking ownership of their personal development and making a clearer commitment to their learning and developing professional status. Above all, my greatest observation during times of uncertainty and crisis is that EAs legitimise the role of the leader; an outstanding EA, with their natural skills of empathy, agility and people-focus, provide the best partnership with an Executive whose focus might be elsewhere. EAs of the future will increasingly be seen as project managers, people managers and collaborators; they may not always utilise the job title ‘manager’, but they certainly act as managers, day in day out, for the benefit of their leader and the wider organisation.
Adam Fidler
Principal and Founder | Adam Fidler Academy
PERSONAL & EXECUTIVE ASSISTANTS
PAs and EAs have taken on more responsibilities in recent years, but upskilling support and pay haven’t necessarily kept up with this trend, having a detrimental impact on employee morale. Organisations that invest in training and development will therefore be better placed to attract and retain the best individuals.
Roddy Adair Director – Personal & Executive Assistants, Hays
Over half (55%) of employers expect their organisation’s performance to increase in the next 12 months, while a further 41% think performance will stay the same, an increase from 35% last year. However, optimism about the wider economic climate has waned, with only 39% of employers feeling positive about prospects, down significantly from 64% in 2021. Meanwhile, the number of PAs and EAs concerned about their employment opportunities in the next 2-5 years has risen, hitting 69% this year compared to 59% last year. However, this represents an improve-ment from 2020, when 85% voiced concerns.
An increasing number of employers have encountered skills shortages over the last year. The proportion reporting some level of shortages was 89%, up from 83% the year before. The shortages have impacted employee morale above all else (56%). According to employers, the main causes of skills shortages include competition from other employers (60%), fewer people entering the PA and EA profession (37%) and a lack of progression opportunities (24%). More than three-quarters (78%) of employers are planning to hire staff in the coming year. However, 71% of employers expect to encounter a shortage of suitable applicants when hiring in the next year and a further 56% expect competition from other employers.
Discover personal & executive assistant salaries
The job market for Executive Assistants (EAs) and Personal Assistants (PAs) continues to be buoyant, with organisations realising the importance of highly-skilled and professional support staff. Certainly, within the EA sector, the pandemic of 2020/2021 provoked a ‘refresh’ when considering how EAs and PAs add wider value to their organisations and, in many ways, empowered job-holders to be more suggestive in the way that they felt their role could contribute. For instance, EAs generally now have more independence and autonomy – which includes them taking the lead on company-wide initiatives, as well as supporting a team or boss. Their role is enhanced by project work, which builds inherent skills of influence, collaboration and commercial awareness – as well as profiling the EA role in their firm. More EAs are also taking ownership of their personal development and making a clearer commitment to their learning and dev-eloping professional status. Above all, my greatest observation during times of uncertainty and crisis is that EAs legitimise the role of the leader; an outstanding EA, with their natural skills of empathy, agility and people-focus, provide the best partner-ship with an Executive whose focus might be elsewhere. EAs of the future will increasingly be seen as project managers, people managers and collaborators; they may not always utilise the job title ‘manager’, but they certainly act as managers, day in day out, for the benefit of their leader and the wider organisation.
Discover salaries for policy and strategy
Purpose, sustainability and diversity matter
Employees seeking a new policy and strategy role are particularly interested in an organisation’s purpose. Almost nine in ten (87%) say this is important to them when looking for a new job. An employer’s commitment to sustainability is also valued, with 77% of professionals rating this as important when job hunting. Just under three-quarters (71%) say their decision to apply for a new role might be affected by an organisation’s demonstration of a diverse and inclusive culture.
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Work-life balance remains a priority
Work-life balance has become even more important to jobseekers, with 45% now rating it the most important consideration after salary, up from 35% last year. 64% of professionals rate their current work-life balance as positive, almost no change from last year (65%). Most organisations (78%) offer hybrid working to staff, while a further 10% are reviewing this option. Flexibility is key however, as 75% of staff say they’d be tempted to change employers if they could choose how often they’re in the workplace when working in a hybrid way. Furthermore, of those planning a career change in the next 12 months, 56% plan to find a role with more of a hybrid working mix in the next 12 months.
Growing salary dissatisfaction prompts future moves
Fewer professionals moved jobs last year (47%) than the year before (55%), but a further 41% considered doing so. The main reason for moving jobs was because of an insufficient salary (32%) followed by a lack of career progression (26%) and because of poor job fulfilment (also 26%). Over the next 12 months, 67% of professionals plan to change jobs, primarily for a better salary and benefits package (31%) as well as more promising future career opportunities (17%). Improved pay and benefits can also help employers to attract employees not planning on changing jobs in the year ahead, with 64% saying they could be tempted to move by these factors.
Salary satisfaction in decline
Most employers (77%) increased employee salaries over the last year, a significant uplift from the year before (45%). Pay across the profession rose by an average of 2.2% over the last year, but certain in-demand roles saw salary increases above this average. For example, those working within data analysis roles can expect pay increases of over 10% in some cases. Those working in research, project management and strategy roles have also received pay rises above the industry average due to strong demand for their skillsets. Salary increases are set to continue with 72% of employers planning for pay uplifts in the year ahead. 41% of professionals say they are dissatisfied with their current salary, a significant increase from 28% who said the same last year.
2.2
Discover policy and strategy salaries
Combatting skills shortages becoming more challenging
Skills shortages continue to affect the industry, with 89% of employers encountering the challenge this year, almost no change from last year (88%). These shortages are having a profound negative impact on organisations’ ability to deliver projects, with 75% citing this issue compared to 51% last year. Employee morale is also being negatively affected by skills gaps, rising from 51% to 53% over the last 12 months.
Recruitment plans are set to increase with 86% of employers planning to hire in the next 12 months compared to 81% last year. However, there has been a notable increase in those expecting a shortage of suitable applicants, up to 77% from 69% last year. Furthermore, 69% expect to face greater competition for talent compared to just 57% last year.
Performance predicted to stay steady in year ahead
Most employers within policy and strategy expect their organisation’s performance to increase in the year ahead (58%), which is a decrease from 66% last year. A further third (33%) expect their organisation’s performance to stay the same in the next 12 months. Just over a quarter (26%) of employers are optimistic about the wider economic climate and its impact on employment opportunities over the next 2-5 years, and a further third (33%) have a neutral view. Employees are cautious about the long-term hiring outlook, with 67% expressing concern compared to 53% last year.
Survey highlights for policy and strategy
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Laura Bennallack Director – Policy & Strategy, Hays
POLICY & STRATEGY
The sector continues to face skills gaps and increased competition for talent. Employee morale and salary satisfaction have decreased within the profession, and increased pay remains the main incentive for professionals to change jobs. Other factors also matter to staff, with professionals seeking a positive work-life balance, a fulfilling job and an organisation committed to sustainability and inclusion.
Talent shortages continue to challenge industry
Skills shortages have been experienced by 97% of life sciences employers in the last year, an increase from 88% who faced the challenge last year. The areas most negatively affected by skills gaps has been employee morale (59%), closely followed by productivity (56%) and the ability to deliver projects (50%). Slightly more employers intend to recruit in the coming year (88%) in comparison to 86% last year, with a focus primarily on hiring permanent staff (79%). However, hiring challenges are anticipated. 78% expect to face competition from other employers when recruiting in the next year, a significant rise from 69% who said so last year.
Discover policy & strategy salaries
Policy & strategy
Discover salaries for policy & strategy
Discover salaries for procurement
Competition fierce to plug skills gap
Negotiation
Procurement is taking a leading role in helping organisations meet their environmental, social and governance (ESG) goals. With consumers increasingly choosing brands with strong green credentials, it’s becoming vital that supply chains are optimised with a more sustainable footprint in mind.
Scott Dance Director – Procurement, Hays
Employers predict a stable outlook
Procurement employers remain confident that activity levels will remain stable, but expectations of growth are more muted than last year. Just 48% of employers foresee an increase in activity in the next 12 months, down on the 70% who thought this in 2021. However, a third (33%) believe activity will remain the same, which signifies a small increase on last year (29%). Sentiment in the longer term portrays a mixed picture – with 32% optimistic about the wider economic climate in the next 2-5 years, a third (33%) neutral, and 35% expressing concern.
Survey highlights for procurement
PROCUREMENT
Employers continue to be challenged by wide skills gaps and strong competition when it comes to talent attraction and retention. While employee mobility and salary satisfaction remain stable, the promise of a better work-life balance is still driving professionals to seek new roles.
Competition fierce for best talent
Salary increases soar
Nearly three quarters (72%) of procurement professionals are satisfied with their salaries, as a staggering 86% of employers say they increased salaries this year, up significantly from just over half (55%) in 2021. Salaries within the procurement profession increased by an average of 3.9% over the last year. The prevalence of counter offers to retain in-demand staff is contributing to this upwards movement in salary. There is also strong demand for category leads, category managers and procurement/sourcing managers across multiple UK regions, with some seeing upwards of a 10% increase to their pay as organisations compete for those with specific category knowledge and experience. Salary increases are expected to continue over the next 12 months, with nearly three-quarters (74%) of employers proposing pay increases for their staff – a considerable increase on the proportion who expected to do so last year (50%).
3.9
Discover procurement salaries
Employee movement plans plateau
Employee mobility remains stable, with 42% of procurement professionals having changed jobs in the past 12 months, on a par with the previous year (44%). The main reason for leaving was low salary (31%), followed by a lack of fulfilment in the job (19%). Just over half (51%) are looking to move jobs in the year ahead, a slight decrease on last year (53%). Movement is largely being driven by a desire for a better salary and benefits package (27%) and improved flexible working options (14%). Almost half (46%) of procurement professionals would be tempted to move jobs for improved salary and benefits.
Lack of flexible working options
Work-life balance key to talent attraction
Aside from salary, work-life balance remains the key attraction of a potential new role, with 40% of procurement professionals citing it as the most important factor when considering a move. Almost nine in ten procurement employers (87%) offer hybrid working at their organisation, considerably higher than the overall UK average (72%). Perhaps as a result of this, 90% of professionals rate their work-life balance as average or better. However, 72% could still be tempted by an employer who offered more flexible working, and 59% plan to actively seek an improved mix of hybrid working in the next 12 months.
The promise of purpose
When considering a new role, a sense of purpose is emerging as a critical factor for professionals, with the vast majority (91%) citing its importance. Furthermore, a commitment to sustainability is viewed as important by 79%, whilst over three-quarters (76%) would be influenced by an organisation’s ability to demonstrate a diverse and inclusive culture in the workplace.
Over two-thirds (70%) of employers plan to recruit in the next 12 months, on a par with last year. These recruitment plans are however being challenged by an ongoing battle for talent. Nearly three quarters (73%) expect to face tough competition from other employers when recruiting. Competition for talent is also cited as the main cause of skills shortages, with 73% of employers identifying it as the reason they are struggling to hire.
Following the Covid-19 pandemic, geopolitical tensions are creating a new and dynamic business environment, disrupting established supply chains and forcing companies to re-imagine their procurement strategies. Those working in procurement must build strength and flexibility into their processes as they adapt. Moreover, they have a crucial role supporting companies to create a more sustainable and equitable society. This combination is putting the skills of experienced procurement professionals in high demand. Individuals who have committed to the highest levels of CIPS training are seeing salaries rise sharply, typically earning 21% more than their non-MCIPS qualified colleagues. Across the sector more generally, salaries in procurement are rising faster than those in the rest of the economy. Our most recent survey shows the skills most in demand amongst procurement professionals are relationship management, communication and negotiation.
Structural changes across the business world, which are likely to persist for some time, are creating shortages of highly-qualified, experienced individuals. Procurement is not immune to this trend. But financial rewards are not the only draw. Companies that positively contribute to a better society through ethical treatment of suppliers, eliminating slavery in their supply chains and seeking sustainable solutions, are increasingly attractive options. By embedding these values at the heart of procurement, values which are fundamental to our core purpose at CIPS, businesses will not only make themselves more attractive to future and current employees, but they will be acting as the good corporate citizens demanded by us all.
Malcolm Harrison
CEO | Chartered Institute of Procurement and Supply
Skills shortages remain prolific within procurement, with 90% of procurement employers having faced skills shortages in the last year, well up from 79% the year before. Over three quarters (78%) cited experiencing moderate to extreme skills shortages, up from 65% last year. Mirroring last year, productivity is the area that has been the hardest hit (60%) by a lack of the right skills.
