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Attractive compensation remains key to hiring and retaining top talent

According to the research by global talent services company, Morgan McKinley for its 2023 Salary Guide, 53% of employees across Australia, Canada, Hong Kong SAR, Ireland, Japan, Mainland China, Singapore and the UK are looking to move jobs in the first half of the year, with 45% citing ‘higher salary’ as their main reason, followed by ‘better career growth and development opportunities’ (16%).

Over half (57%) of employers globally believe that they will lose staff in the first half of 2023 due to higher earning potential in other companies, according to new research.

According to the research*, 53% of employees across Australia, Canada, Hong Kong SAR, Ireland, Japan, Mainland China, Singapore and the UK are looking to move jobs in the first half of the year, with 45% citing ‘higher salary’ as their main reason, followed by ‘better career growth and development opportunities’ (16%).

The survey revealed that 69% of global employers offered higher than expected salaries to attract new employees over the past 12 months. Furthermore, 70% of employers think that salaries in their specific sector will rise again in 2023, with 44% planning on increasing base salaries across all teams. 

Over half (55%) of employees are expecting their salaries to increase this year, with 58% also expecting some form of bonus payout.

Nearly two in three (63%) global businesses plan to hire new permanent, contract or temporary workers in the next six months, according to new research.

Seb O’Connell, Group Chief Executive Officer, commented: “Despite economic uncertainty impacting most countries, many organisations are recruiting. This appetite to hire is in response to pent-up demand lingering from the pandemic, replacements for staff turnover, driving ahead with change agendas, satisfying regulatory and legal requirements, or maximising the commercial opportunities that exist. There has been a definite shift towards a contract market in the light of global economic uncertainty. As companies watch their headcount and costs, short-term contract hiring will be prevalent.”

O‘Connell continued: “We expect to see a slight recalibration of salaries this year compared to 2022, but top talent can expect to see their pay rise when moving roles. A skills shortage remains in many sectors across the globe, creating a ‘bidding war’ between companies to secure talent, and from current employers to hold onto their staff. Combined with high inflation and increased living costs, there is upward pressure on salaries in many countries.” 

O’Connell concluded: “Until the availability of talent returns, there will be competition, and the potential for higher earnings will be there. It’s important to be mindful of benchmarks – you don’t want to over-offer, but equally you need to be attractive to top performers so you don’t fall behind in the war for niche and in-demand talent. With jobseekers likely to be in multiple processes, making sure your hiring strategy is streamlined and efficient will put you in a strong position.”

The Morgan McKinley 2023 Salary Guide presents up-to-date salary data for a wide range of roles across the world, providing hiring managers with industry benchmarks when they are working out what to pay employees and giving professionals more visibility over what they can earn. 

Research from businesses and professionals was conducted to find out what companies’ hiring intentions are for 2023, whether there is an appetite to change jobs, and what the expectations are for movement on salaries.

*Research from Morgan McKinley

 https://www.morganmckinley.com/salary-guide/calculator 

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    21 April 2024

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