REC says increases starting salaries at three-year high

REC says increases starting salaries at three-year high

Starting Salary Increase

Trade association The Recruitment and Employment Confederation (REC) has revealed that the starting salaries being offered by UK companies are currently rising at the fastest rate since June 2015. Faced with significant skills shortages, employers are also hiring at the joint fastest rate since April 2015.

REC chief executive Kevin Green said:

“The UK has almost full employment and the country is plagued by labour, skills and talent shortages.

“This increasing competition for good-quality staff is driving up starting salaries with employers willing to pay higher wages to attract the right people. So, it’s a good time to move jobs, especially as employers aren’t increasing wages for their existing workforce.”

Information technology is the business sector experiencing the largest skills shortage, followed by engineers and accounting and finance.

With wage increases for existing staff remaining below inflation in many cases, the best way to secure a meaningful pay rise right now might be to land a new role, especially one in an area where skills shortages exist. If you have decided you want a new challenge, then call KennedyPearce today.

However, although wages are still falling in real terms for many people who choose to stay put, human resources consultancy XpertHR has revealed that wage growth levels are increasing to some extent. Their analysis of pay settlements from 1 November 2017 to 31 January 2018 shows that median basic pay awards in this three-month period rose by 2.5%, whereas the figure was as low as 2% for every three-month period throughout 2017. This 2.5% figure is the highest for four years.

A majority (53.5%) of these pay awards were higher than those received by the same group of employees in the previous year. Only 3.1% of ‘pay awards’ between November and January involved a pay freeze.

The Bank of England’s Agents’ summary of business conditions report for the final quarter of 2017 contains predictions for wage growth from a number of industry experts. In this report, many of the experts expected the typical pay award in the coming year to be between 2.5% and 3.5%.

Search For a Job