Hays Salary Guide released: Salaries increase as skills shortage inflates expectations
- 88% of employers will increase salaries in their next review – up from 67%;
- 37% will award increases of 3% or more – up from 12%;
- 77% say the skills shortage has forced them to offer higher salaries than planned;
- Yet 84% of employees say an increase of 3% or more would reflect their individual performance and the demand for their skills.
Professionals say they deserve more
|Employers’ salary increase intentions||Increase employees say reflects their performance and demand for their skills|
|Up to 3%||51%||13%|
|Above 3% but less than or equal to 6%||27%||35%|
|Greater than 6%||10%||49%|
Skills shortage impacts salaries
Other key findings
- Employers hold a positive outlook: 77% of employers expect business activity to increase in the year ahead, up from 72% last year. 43% expect the economy to strengthen in the next six to 12 months.
- Hiring intentions rise: 61% of employers intend to increase permanent staff levels in FY22/23, up from 47% last year. 36% will increase their use of temporary and contract staff, up from 15%.
- Benefits increase to attract candidates: 35% of employers have improved benefits and working practices to entice more staff. Flexible working continues to evolve, with 64% of employees looking for an adaptive hybrid approach. Purpose, equity diversity & inclusion, and sustainability are increasingly on candidates’ agendas, too.
- Lifelong learning is the new norm: 18% of employers cite upskilling as their key strategy to overcome the decreased access to talent. Meanwhile, employees have upskilled in the past year to improve their job prospects – 45% grew their technical skills, 36% their soft skills and 26% their digital skills. 15% reskilled.
- Mastering change: Organisations are preparing for their future, with 34% undertaking a workplace transformation in the past year to take advantage of economic opportunities.
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A skills recession is upon us. How will employers adapt?
95% of employers to increase salaries: Hays Salary Guide FY23/24 released