3 IN 10 EMPLOYEES TO SAY THEY’LL QUIT THEIR JOB IF SALARY EXPECTATIONS AREN’T MET THIS YEAR

Posted on 12th February 2024

This month sees leading UK hiring platform Totaljobs publish its 2024 edition of its Salary & Benefit guides. Totaljobs analyses over 23 million job ads to help employers accurately benchmark their salaries and offer guidance on how to meet the challenges of attracting and retaining talent in an ever-changing labour market.

The research has found that despite recent increases in salaries for some workers and a reduction in the overall rate of inflation, the cost of living continues to drive concerns and dissatisfaction amongst UK workers.

As the financial year closes and pay review season approaches, workers on average are hoping for a pay rise of 3.7% in 2024, with 3 in 10 (30%) saying that if their pay rise doesn’t meet expectations, they’ll go so far as to look for a higher paying job elsewhere.

In fact, over a third (34%) of the national workforce are unhappy with their current pay, with the main reason being that they feel their salary doesn’t reflect the time and effort they put into their work (41%).

External pressures continue to drive this trend with 1 in 6 (12%) UK workers saying that they’re still struggling to meet the costs of basic living expenses, with more than a third (37%) citing their inability to live comfortably as one of the chief reasons they’re currently dissatisfied with their job. More than half (57%) of workers continue to be worried about their salary due to the UK cost of living crisis.

Money on the table?

Salary holds clear importance to job satisfaction and loyalty: 71% workers say a higher salary gives them greater job satisfaction, with a similar amount (69%) saying it makes them more loyal to their employer, a key factor as employers have cited that staff retention and engagement has become the number one people priority for businesses in 2024.

Despite a trend of record wage growth since Covid-19, recent highs in inflation have undercut this growth (in real terms) up until June 2023.

On the positive side, two-thirds (67%) of UK workers have received a pay rise in the last 12 months, receiving an average increase of 5.5%. The majority of pay rises were given as part of an employer’s standard salary review process (27%), or to bring pay in line with inflation (22%). The latest Totaljobs Hiring Trends Index also recently indicated that a third of businesses (33%) plan to increase salaries and bonuses at the start of 2024 in a bid to retain talent.

However, there remains a clear discomfort from employees themselves with initiating conversations around salary with just 5% of workers having received a pay increase through their own negotiation.

The Market Rate

Advertised salaries grew 3.4% across the thirty key industries Totaljobs analysed between 2022 and 2023, down from 4.1% the previous year. The average (median) advertised salary is currently £34,422.

Those industries with the highest wage increase in 2023 were Retail (grew 15%), Legal (grew 12%) and Travel (6%), with the top paying industries remaining IT & Finance.[1]

Perks of the job

There are instances where workers would be willing to skip a pay rise. Over two-fifths (44%) would consider foregoing a salary increase to gain access to specific workplace benefits, this is the highest for workers who desire full-time remote working (49%).

The most attractive benefit for employees remains flexible working (35%, down from 44% last year) despite the return to the office push, followed by generous pension contributions (27%), bonuses and paid holiday allowances (26%) and private health insurance (24%).

Julius Probst, European Labour Market Economist at Totaljobs said “Whilst inflation has fallen in the past six months, its effects continue to drive shifts in both wages and the labour market, but it is essential to recognise that money is not the sole factor, businesses listening to the needs and wants of employees is vital.

Setting fair and transparent salaries and promoting both workplace support and non-monetary benefits available to staff, are a key in ensuring businesses can continue to plug ongoing skills gaps. Employers should consider what further information they can add to their salary details, additional benefits such as the amount of annual leave offered, pension contributions or a robust career trajectory.

Recruitment and retention should go hand in hand, necessitating a review of engagement strategies and benchmarking salaries will help achieve successful recruitment objectives over the course of 2024.”

For more information visit totaljobs.com