With the worst economic shocks of the pandemic fading into memory, now is an opportune moment for businesses to consider expanding their workforce as they look to grow into new markets and win new customers.
However, it’s not the easiest market in which to find new talent. With vacancies at record highs and rampant inflation, many candidates are demanding significantly higher wages than they did before the pandemic. To secure that key hire, you are likely to have to offer something special.
How fast are wages rising?
The rate of annual pay growth (including bonuses) among employees was 4.8% in November 2021 to January 2022, an increase from 4.6% in the previous three-month period, according to figures from the Office for National Statistics.1
However, when taking inflation into account and excluding bonuses, real wages are actually falling. Indeed, inflation is likely to dominate the jobs market in the months ahead. The Bank of England has forecast it could hit 8% by the end of June and potentially be in double digits later this year.2 That is likely to force businesses to increase wages to help their employees cope with rising prices.
Meanwhile, the number of job vacancies in the period December 2021 to February 2022 rose to a new record of 1,318,000, an increase of 533,000 from the pre-coronavirus level in January to March 2020.3 This shortage of candidates has been compounded by the Great Resignation, when tens of thousands of people left their jobs during the pandemic to work remotely or in a completely different industry.
The large number of vacancies mean the best candidates have more choice of where to work – and will often go to the employer who offers them the highest pay.
How can you find the best staff in such a difficult jobs market?
“Increasing the salaries you’re offering will help bring in talent right now,” says James Lloyd-Townshend, Chief Executive and Chairman of Tenth Revolution Group, which helps develop talented workers for cloud-computing companies. “While you’ll take a financial hit in the immediate term, you could end up saving money in the long run, as you’ll have the talent you need to expand and improve your business. Plus, that talent will be more satisfied, so you’ll be able to spend less money and time trying to find new staff.
“When you’re working within a candidate-driven market, finding the right talent can be incredibly difficult. They have more choice than ever, and sheer scarcity means some organisations are being ‘priced out’ of the people they need to conduct business-critical tasks, such as digital transformation.”
Are there other ways to attract new talent?
It doesn’t always have to be about the money. Convincing a candidate that your business culture or mission fits with their values can be an effective way to avoid wage inflation.
“The Great Resignation is affecting the marketplace,” said Liz Sebag-Montefiore, a career coach and co-founder and Director of 10Eighty, an employee engagement platform. “It's very much an employee's marketplace and most people turning up for interviews have another five or six roles they're interviewing for.”
Liz adds that providing new talent with clear direction as part of their onboarding process is hugely important when looking to hire new staff. 10Eighty has recently launched a coaching app that can help individuals settle into their new organisation and support them to deliver their best as quickly as possible. “What’s going to stand you out as an employer?” Liz asks. “For me, it’s not about the pay or the benefits; I believe it’s around making things employee-centric – giving them freedom with accountability.
“Candidates will have different preferences, especially when they could be working in a hybrid way, so job descriptions need to be tailored. Employers have to be flexible in what they offer – it’s all about providing an agile working environment.”
The right person is out there
If you stay positive and true to your beliefs, it is possible to find the perfect new team member for your business.
“In the past three months, we have hired three brilliant people and have grown our team to a total headcount of six,” said Lina Barker, co-founder of Aaron Wallace, a market-leading grooming brand for Black men that is sold in ASOS, Sainsbury’s, Saks Fifth Avenue, Zalando and Liberty.
“The job market is interesting; there are so many moving parts. I am hearing of lots of opportunities and the increased competition between companies to attract and retain talent, but in some sectors I also see a lack of job opportunities available.
“As more and more of what we do moves online and becomes possible to do remotely, I think we are seeing more tech-based jobs become available and less service-based work.”
If you’re expanding and looking to hire new talent, speak to us for financial advice.
With the worst economic shocks of the pandemic fading into memory, now is an opportune moment for businesses to consider expanding their workforce as they look to grow into new markets and win new customers.
However, it’s not the easiest market in which to find new talent. With vacancies at record highs and rampant inflation, many candidates are demanding significantly higher wages than they did before the pandemic. To secure that key hire, you are likely to have to offer something special.
How fast are wages rising?
The rate of annual pay growth (including bonuses) among employees was 4.8% in November 2021 to January 2022, an increase from 4.6% in the previous three-month period, according to figures from the Office for National Statistics.1
However, when taking inflation into account and excluding bonuses, real wages are actually falling. Indeed, inflation is likely to dominate the jobs market in the months ahead. The Bank of England has forecast it could hit 8% by the end of June and potentially be in double digits later this year.2 That is likely to force businesses to increase wages to help their employees cope with rising prices.
Meanwhile, the number of job vacancies in the period December 2021 to February 2022 rose to a new record of 1,318,000, an increase of 533,000 from the pre-coronavirus level in January to March 2020.3 This shortage of candidates has been compounded by the Great Resignation, when tens of thousands of people left their jobs during the pandemic to work remotely or in a completely different industry.
The large number of vacancies mean the best candidates have more choice of where to work – and will often go to the employer who offers them the highest pay.
How can you find the best staff in such a difficult jobs market?
“Increasing the salaries you’re offering will help bring in talent right now,” says James Lloyd-Townshend, Chief Executive and Chairman of Tenth Revolution Group, which helps develop talented workers for cloud-computing companies. “While you’ll take a financial hit in the immediate term, you could end up saving money in the long run, as you’ll have the talent you need to expand and improve your business. Plus, that talent will be more satisfied, so you’ll be able to spend less money and time trying to find new staff.
“When you’re working within a candidate-driven market, finding the right talent can be incredibly difficult. They have more choice than ever, and sheer scarcity means some organisations are being ‘priced out’ of the people they need to conduct business-critical tasks, such as digital transformation.”
Are there other ways to attract new talent?
It doesn’t always have to be about the money. Convincing a candidate that your business culture or mission fits with their values can be an effective way to avoid wage inflation.
“The Great Resignation is affecting the marketplace,” said Liz Sebag-Montefiore, a career coach and co-founder and Director of 10Eighty, an employee engagement platform. “It's very much an employee's marketplace and most people turning up for interviews have another five or six roles they're interviewing for.”
Liz adds that providing new talent with clear direction as part of their onboarding process is hugely important when looking to hire new staff. 10Eighty has recently launched a coaching app that can help individuals settle into their new organisation and support them to deliver their best as quickly as possible. “What’s going to stand you out as an employer?” Liz asks. “For me, it’s not about the pay or the benefits; I believe it’s around making things employee-centric – giving them freedom with accountability.
“Candidates will have different preferences, especially when they could be working in a hybrid way, so job descriptions need to be tailored. Employers have to be flexible in what they offer – it’s all about providing an agile working environment.”
The right person is out there
If you stay positive and true to your beliefs, it is possible to find the perfect new team member for your business.
“In the past three months, we have hired three brilliant people and have grown our team to a total headcount of six,” said Lina Barker, co-founder of Aaron Wallace, a market-leading grooming brand for Black men that is sold in ASOS, Sainsbury’s, Saks Fifth Avenue, Zalando and Liberty.
“The job market is interesting; there are so many moving parts. I am hearing of lots of opportunities and the increased competition between companies to attract and retain talent, but in some sectors I also see a lack of job opportunities available.
“As more and more of what we do moves online and becomes possible to do remotely, I think we are seeing more tech-based jobs become available and less service-based work.”
If you’re expanding and looking to hire new talent, speak to us for financial advice.
With the worst economic shocks of the pandemic fading into memory, now is an opportune moment for businesses to consider expanding their workforce as they look to grow into new markets and win new customers.
However, it’s not the easiest market in which to find new talent. With vacancies at record highs and rampant inflation, many candidates are demanding significantly higher wages than they did before the pandemic. To secure that key hire, you are likely to have to offer something special.
How fast are wages rising?
The rate of annual pay growth (including bonuses) among employees was 4.8% in November 2021 to January 2022, an increase from 4.6% in the previous three-month period, according to figures from the Office for National Statistics.1
However, when taking inflation into account and excluding bonuses, real wages are actually falling. Indeed, inflation is likely to dominate the jobs market in the months ahead. The Bank of England has forecast it could hit 8% by the end of June and potentially be in double digits later this year.2 That is likely to force businesses to increase wages to help their employees cope with rising prices.
Meanwhile, the number of job vacancies in the period December 2021 to February 2022 rose to a new record of 1,318,000, an increase of 533,000 from the pre-coronavirus level in January to March 2020.3 This shortage of candidates has been compounded by the Great Resignation, when tens of thousands of people left their jobs during the pandemic to work remotely or in a completely different industry.
The large number of vacancies mean the best candidates have more choice of where to work – and will often go to the employer who offers them the highest pay.
How can you find the best staff in such a difficult jobs market?
“Increasing the salaries you’re offering will help bring in talent right now,” says James Lloyd-Townshend, Chief Executive and Chairman of Tenth Revolution Group, which helps develop talented workers for cloud-computing companies. “While you’ll take a financial hit in the immediate term, you could end up saving money in the long run, as you’ll have the talent you need to expand and improve your business. Plus, that talent will be more satisfied, so you’ll be able to spend less money and time trying to find new staff.
“When you’re working within a candidate-driven market, finding the right talent can be incredibly difficult. They have more choice than ever, and sheer scarcity means some organisations are being ‘priced out’ of the people they need to conduct business-critical tasks, such as digital transformation.”
Are there other ways to attract new talent?
It doesn’t always have to be about the money. Convincing a candidate that your business culture or mission fits with their values can be an effective way to avoid wage inflation.
“The Great Resignation is affecting the marketplace,” said Liz Sebag-Montefiore, a career coach and co-founder and Director of 10Eighty, an employee engagement platform. “It's very much an employee's marketplace and most people turning up for interviews have another five or six roles they're interviewing for.”
Liz adds that providing new talent with clear direction as part of their onboarding process is hugely important when looking to hire new staff. 10Eighty has recently launched a coaching app that can help individuals settle into their new organisation and support them to deliver their best as quickly as possible. “What’s going to stand you out as an employer?” Liz asks. “For me, it’s not about the pay or the benefits; I believe it’s around making things employee-centric – giving them freedom with accountability.
“Candidates will have different preferences, especially when they could be working in a hybrid way, so job descriptions need to be tailored. Employers have to be flexible in what they offer – it’s all about providing an agile working environment.”
The right person is out there
If you stay positive and true to your beliefs, it is possible to find the perfect new team member for your business.
“In the past three months, we have hired three brilliant people and have grown our team to a total headcount of six,” said Lina Barker, co-founder of Aaron Wallace, a market-leading grooming brand for Black men that is sold in ASOS, Sainsbury’s, Saks Fifth Avenue, Zalando and Liberty.
“The job market is interesting; there are so many moving parts. I am hearing of lots of opportunities and the increased competition between companies to attract and retain talent, but in some sectors I also see a lack of job opportunities available.
“As more and more of what we do moves online and becomes possible to do remotely, I think we are seeing more tech-based jobs become available and less service-based work.”
If you’re expanding and looking to hire new talent, speak to us for financial advice.