Four-in-five businesses fear losing top talent
Despite rising unemployment, hiring demand remains strong across key UK sectors
Over four-in-five (86%) businesses are concerned about losing their top talent due to the impact of COVID-19, according to the latest international research from specialist recruiter Robert Half.
The study of over 1,500 executives[1] found that of those worried about their ability to retain key employees between now and the New Year, over a third (36%) cite salary reductions and the inability to increase wages as the main reason.
This latest research coincides with the release of Robert’s Half 2021 Salary Guide, providing salary information on more than 250 positions across a range of industries, including accounting, finance, technology, and HR in the UK.
COVID-19 salary trends
Despite the uncertainty surrounding long-term financial remuneration, the majority of companies have continued to compensate staff at pre-COVID-19 levels thus far in a bid to retain top talent.
Three quarters of businesses (73%) are still offering salaries that meet or exceed pre-pandemic figures. Almost half of all senior managers surveyed (47%) said salaries had held steady since the pandemic began, while a quarter (26%) actually noted an increase in base compensation over the same period.
Most businesses plan to continue paying bonuses this year, with half (52%) expecting to make payments which either meet or exceed pre-COVID-19 equivalents, while 38% are offering less, year-on-year – evidence that the impact of COVID-19 has been far from uniform across all industries.
In the UK, the dramatic increase in remote working is having a significant impact on wages as managers use different approaches to calculate starting salaries for new hires. Two-in-five UK firms (42%) currently use the business’ location to benchmark remuneration – significantly higher than the international survey average of 28% – while almost a third (28%) focus on the applicant’s location, and 26% use a combination of the two.
Matt Weston, Managing Director of Robert Half UK, said: “Employees are a company’s most valuable asset for navigating both short-term disruption and achieving long-term growth. Workers have been stretched to the limit during the pandemic, often putting in longer hours, taking on additional responsibilities, acquiring new skills and using recent months to reassess their career priorities.
“Following the first lockdown, professionals are savvier about the market value of their skills and current salary trends than ever before. While the opportunities to increase remuneration may be tricky in the coming months, employers should research compensation trends regularly and be prepared to move quickly and negotiate effectively – using both financial and non-financial benefits – in order to retain key employees or hire promising talent.”
Alternative employee benefits
While salary definitely remains an important consideration, almost two thirds of businesses (61%) are introducing new, non-financial employee benefits to compensate existing staff and attract new hires in lieu of salary increases going into 2021.
Amongst the five countries recently surveyed by Robert Half, UK businesses are more likely to provide mental health resources and assistance (51%), wellness programmes (47%) and an at-home office equipment allowance (47%) for employees compared to their mainland European and South American counterparts (42%, 32% and 44% respectively).
Maintaining a healthy work-life balance also continues to be a top priority for many, with almost three quarters of managers (71%) committed to offering remote work for the foreseeable future.
‘Flexitime’ policies that allow employees to structure their workday or week as they please have already been established at 61% of companies surveyed, while compressed work weeks (52%) and permanent part-time arrangements (51%) are also favoured by executives in response to COVID-19-induced changes.
Matt Weston commented: “Salaries will likely remain under some pressure over the coming months, but non-monetary benefits, such as a better work-life balance, will all figure prominently amongst COVID-19’s longer-term workplace legacies.
“With the current economic volatility likely to continue, the prospect of a salary freeze over coming months can be made much more palatable if managers can ensure that non-financial benefits are sufficiently attractive and add alternative value for employees.”
UK hiring demand still strong across key sectors
While the coming months will undoubtedly prove challenging for many, Robert Half reports that a number of key sectors across the UK continue to show strong demand for new hires, including financial services, professional services, healthcare, pharma, biotech, publishing and manufacturing.
Matt Weston commented: “Without a doubt, unemployment in the UK has risen as a direct result of the pandemic, but the impact of COVID-19 has been far from uniform across all industries. There are still opportunities out there – a considerable number of them driven by the shift to remote working.
“Professionals with in-demand skills know they still have options, and employers need to offer competitive salaries and benefits to retain key personnel, as well as to attract and secure top candidates for the remainder of 2020 – and beyond.”
