Rising salaries to attract new recruits, study finds

According to a report, companies must increase pay rates to recruit new employees.

Demand for staff continues to rise amid easing pandemic restrictions and improving confidence in the economy, recruiters say.

Fixed salaries for permanent and temporary staff are rising, fueled by a shortage of applicants, the Recruitment and Employment Confederation (REC) and KPMG said.

Their survey of 400 staffing agencies suggested vacancy growth fell slightly to its lowest level in nine months.

Neil Carberry, chief executive of REC, said: “The job market is still growing strongly at the start of 2022.

“With competition for staff still fierce, companies need to raise pay rates for newcomers to attract the best, and the cost of living crisis also means that job seekers who want a pay rise are more under pressure.

“The role of government is to manage inflation, but also to ensure that it does not discourage investment. Now is not the time to increase national insurance, the biggest business tax.

Claire Warnes of KPMG said: “The new year has seen the labor market continue where it left off, with a surge in permanent and temporary hires.

“Meanwhile, a sustained decline in the number of suitable candidates has pushed up starting salaries for another month.

“Some sectors continue to show the pressure of strong demand for permanent and temporary positions.

“In particular, IT and IT, as well as Nursing, Health and Medicine sectors saw the largest increases in vacancies for another month, reflecting significant labor challenges. labor and skills that these sectors have faced, and that the pandemic has accelerated.”

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