New hires paid £1,581 more than existing employees in the same role
The latest research from totaljobs has revealed that new hires earn an average of £1,581 more than existing employees in the same role. With UK employment levels reaching record highs, workers are entering their job search with greater composure and confidence.
Meanwhile, with a widely reported skills shortage, employers are facing fierce competition for talent. This means that many have felt a growing need to offer competitive salaries to secure new recruits.
The power of negotiation
The research, which pulled insight from over 250 employers and 1,000 UK workers, has revealed the growing impact of negotiation. As such, 45% of employers admit to paying those new to the job more than existing employees in the same role.
When asked why, a third of British bosses claim this was a result of a candidate’s negotiation. A quarter claim that a contributing factor is the pressure to fill a role quickly and 28% noted that they are proactive with offering higher salaries, as it gives them the edge over competitors when recruiting.
More than a payslip
For employers looking to secure and retain the best talent, thought has to go into factors beyond remuneration.
Our research revealed that two thirds of UK workers remain loyal to their employer, if they enjoy their work.
As part of the Global Talent Survey, we discovered the top 10 most important factors to job satisfaction. Interestingly, salary is nowhere to be seen. Instead, the employees are focused on work-life balance, the relationships they have with peers and superiors, and appreciation for their work.
Three quarters of workers did not negotiate on salary when they joined their existing role, and what’s more, the research found that 59% of workers admit they have never moved jobs to boost their income.
What this means for employers
The current landscape has afforded more power to the candidate, and with a suite of options and offers, they can afford to negotiate.
For employers, it’s vital that their salaries are benchmarked against the industry average, and that hiring managers are able to secure wiggle-room within their recruitment budget to secure the best talent.
When it comes to current employees, and those that request a pay increase, a consideration must be the rising cost of replacing employees. Is offering a small pay increase to one of your best, most loyal team members actually a cost-saving exercise compared to an average cost per hire of £24,000?
Fortunately for employers, money is oftentimes not a factor, with 2 in 3 people claiming that they wouldn’t leave a company to pursue a higher salary. With this in mind, alongside a well-rounded fiscal strategy for recruitment, employers must consider what they are offering in terms of emotional reward.
This includes, the opportunity for career progression and development, a well-defined and positive company culture, and where possible – a shared purpose and vision. It’s these pieces of the puzzle that will ultimately strengthen an employer brand, alongside a competitive salary structure.