Thorpe Molloy Recruitment launches its annual salary guide, summarising recruitment trends of the past year and predicting the state of the job market in the 12 months to come across its specialisms.
The guide offers a benchmark for those in a position to hire in 2017 and guidance on current rates of pay for job seekers in the highly competitive local job market.
Managing Director, Amanda McCulloch summarises the finding here, but a complete copy of the guide is available to download at www.thorpemolloy.com/resources/ .
Indicative of the sustained pressure on costs, permanent rates of pay have remained static or declined across our specialisms, with many candidates accepting additional responsibilities and promotions with no commensurate increase in pay.
Job seeking candidates became even more adaptable in their pursuit of employment during 2016, acting flexibly with respect to salary expectations, patterns of working and geography – this increased mobility potentially causing an irreversible knowledge exodus from the area.
The search for employment was intensified by competition from retained employees who fear for their job security and those who work in companies which have streamlined to an extent where there is insufficient talent management, or no capacity for development.
While job seekers have become increasingly flexible the opposite is true for hiring clients. Their perception is that there is a bountiful market which is rich in candidates who will be “just right”.
This type of “Goldilocks Recruitment” has created a cautious hiring environment with much greater scrutiny of the process and much more time and deliberation taken over remit, role fit, experience and accomplishments.
Unfortunately, caution, combined with another prevalent business behaviour this year – erratic communication, has frustrated job seekers, knocking their confidence while simultaneously negatively impacting the hiring employer’s brand.
The organisational appetite for cross sector hiring continued to rise throughout 2016. Executives who have thrived in corporate environments where the challenges and pressures are similar to that now experienced in oil and gas are valued for their skills, experience and intrinsic personal qualities. Previously they would have been discounted entirely on the grounds of irrelevant sector knowledge.
Research by the Recruitment & Employment Confederation (The Uberisation of Work) found that only 13% of British people believe they will be working in traditional 9 – 5 employment by 2025 and that digital work platforms are accelerating the trend towards flexible, meaningful employment which millennials favour.
What does this mean for the north east of Scotland?
Local employers have a critical role to play in the region’s future prosperity by appealing to the mobile millennial talent through work opportunities which are collaborative and generate rich working experiences rather than prescriptive career progression.
Despite an over-supply of candidates, compensation and benefits remain significant differentiators for businesses with retention, engagement and productivity in mind.
Throughout 2016, limiting or reducing discretionary benefits packages was a cost saving initiative accepted by employees as a trade-off which could save jobs. While salary is still hugely important, non-monetary elements such as flexible hours of work, learning and development as well as performance based recognition top the wish-list for candidates.
Therefore, as soon as a favourable change in market conditions arises, employers will need to reinstate competitive benefit packages and salary benchmarking practice in order to remain competitive, minimise attrition and the associated costs of recruitment and training.