1/13/2016 10:00:00 AM
Will your company reward package attract and retain talent in 2016?
Salaries are expected to grow in 2016 for professional occupations. Are you offering a competitive enough salary to attract and retain talent?
The UK economy continues to rely on specialist professionals who can add value to a firm from day one, which means there is a growing need for businesses to offer candidates competitive salaries. Some recruitment and salary trends we expect to see through 2016 include:
Hiring within the technology function is expected to grow by 4%
Digital technology and IT security functions are expected to see the highest salary rises, including digital technology specialists at 7% and IT security at 6%
Administration and office support salaries are predicted to grow beyond the average, including receptionists at 3.4% and administrative assistants at 3.2%
Hard-to-fill roles will experience higher than average pay rises due to the increased competition for these candidates
The need for firms to embrace innovation for future growth and improved productivity, as well as the rapid growth of the technology sector itself – which is recognised as a key growth area for the UK economy, contributes to rising salary rates.
How does your firm stack up against competitors when it comes to remuneration? It may be time to review your employee reward package as competition for the best talent heats up in 2016. Saving on staffing costs by offering a low salary is not usually worthwhile in the long run. Below, we explore the reasons why you should offer at the right level, as well as the best way to establish exactly what that the right salary level is.
Conduct a Salary Review
Establishing the appropriate salary for an employee takes a lot more into consideration than you might think. Quite often, employers will “wing it” or estimate pay rates for their employees. While that can work for the smaller companies and micro-businesses, it is not effective or sustainable for growing or larger businesses. Proactively benchmarking salaries will give business owner-managers clarity in meeting their retention and hiring needs.
Consider evaluating the job role objectively, without an employee in it. Think carefully about what the job is worth to the business/organisation, rather than what a particular person should be paid.
Know what the market is offering
Get familiar with current hiring trends both across the UK and in the local area. Skilled candidates are receiving multiple offers and counteroffers as businesses seek to secure top performers. Insights relating to in-demand skills and positions will be valuable to your company also, and salary survey data will allow you to compare your salary offering with both your direct and indirect competitors.
Be ready to negotiate
A recent study found that 7 in 10 IT candidates are more likely to negotiate their salary, particularly in small and medium sized businesses. Candidates are more aware that their skills are in high demand, which puts them in a strong position. If you are serious about attracting and retaining high calibre, skilled staff, it is critical to stay up-to-date with current remuneration patterns.
Don’t overlook non-salary rewards and enticements
Money is not always the deciding factor when people choose their next career move. Higher pay is often a less important factor than better work–life balance when employees are considering a career move. This indicates that professionals are looking for a comprehensive remuneration package. Consider whether there is an opportunity to give employees greater work-life balance or access to unique learning and development programs in 2016.
Demand for highly skilled candidates far outweighs supply as we head into 2016. The economy is steadily improving and competition for top talent is only going to get more fierce, this year and beyond. Now is a good time to review your company’s approach to attracting (and retaining) high quality candidates.