Starting salaries are rising at a record rate as companies fight to attract a shrinking pool of potential employees who are willing to take a new job.
A recent report from KPMG has shown that 38.3% of employers were forced to pay more in June than in May in order to attract staff. 58.2% said their salary offers stayed the same, whilst only 3.5% said they were paying less.
Pay has now risen for 26 consecutive months, with last month’s survey giving the highest reading since the survey launched in 1997.
Bernard Brown, partner and head of business services at KPMG, told The Telegraph:
“Once again employers seem ready to ‘splash the cash’ in what appears to be a desperate attempt to lure skilled staff from competitors. Yet despite offering starting salaries at a rate that has not been seen during the survey’s 17 year lifetime, it is clear that candidates are not easily swayed.
“As consumers they may be facing rising house prices and struggling to build financial reserves because of low interest rates, but the desire for extra disposable income is not yet translating into a generation of employees who are only loyal to their monthly pay cheque.”
Mr Brown went on to suggest that employers need to recognise that take home pay isn’t the only thing that employees care about.
The report also showed that the labour market continues to tighten, with the reading for the amount of staff available for permanent positions dropping to 27.5, where 50 indicates no change.
Image by Chris Isherwood