The Robert Half report surveyed over 1,500 executives and found that of those who had concerns about not being able to keep their key employees between now and the New Year, 36% said the main reasons were due to salary reductions and the inability to increase wages.
The increase in remote working is also having an impact on wages, with managers using different approaches to calculate starting salaries for new staff. For example, 42% are using the company’s location to benchmark remuneration, while 28% are focussing on the applicant’s location, and 26% are using a combination of the two.
Matt Weston, Managing Director of Robert Half UK, commented, "Employees are a company’s most valuable asset for navigating both short-term disruption and achieving long-term growth. Tech-focused workers, in particular, have been stretched to the limit during the pandemic with many companies speeding up their digitisation efforts and/or deploying new technologies in response to the current pandemic. Teams have been 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.”
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