Scottish employers show strong optimisim for 2007

One in four (27 per cent) Scottish employers will increase staffing levels over the next six months

More than a third (37 per cent) of Scottish employers plan to increase employee salaries during the first half of 2007

Research released today [22 January 2007] by specialist recruitment consultancy Robert Half Finance and Accounting reveals that over one quarter (27 per cent) of employers in the Scottish financial industry are planning to increase their number of full time staff over the next six months.

The Scottish Employment Index, a survey of almost 200 finance professionals in Edinburgh and Glasgow, goes on to reveal that the main reason for companies increasing staffing levels in 2007 is due to business expansion, as nominated by more than half of respondents (52 per cent). Other factors driving the need for more staff include increased workload (29 per cent) and mergers and acquisitions (three per cent). Interestingly, only ten per cent of respondents expect to hire new employees because of staff turnover.

The optimism amongst Scottish employers also extends to salaries with over a third (37 per cent) of employers expressing their intentions to increase employee salaries in 2007 by an average of 3.5 per cent which is well above the Bank of Englandís 2.0 per cent target; some respondents expect an increase as high as 10 per cent.

Phil Sheridan, Managing Director of Robert Half Finance and Accounting, said:

ìOur latest survey demonstrates that, on the whole, Scottish employers are very optimistic about 2007 and are prepared to invest in their people. Itís also encouraging to see that this increase in hiring intentions is being driven by business expansion, rather than staff turnover.

ìScottish employers clearly recognise the value of retaining staff and many continue to implement policies and procedures to motivate staff and minimise turnover costs.î

Other key findings from the Scottish Employment Index include:

In the last six months, 15 per cent of Scottish employers have introduced flexible working hours to existing benefits packages.

- 54 per cent of Scottish employers now offer a flexible benefits package that can be tailored to meet the needs of individual employees.

- More than half (53 per cent) of Scottish employers say their company is environmentally responsible.

- Almost a third (31 per cent) of all Scottish employers offer monthly on-the-job training and development support.

Phil Sheridan added:

ìIn 2007, benefits such as flexible working hours and increased holiday leave will become more common place. To continue to motivate and engage employees firms should look carefully at what they are offering their staff in terms of benefits packages, and in particular concentrate on training and career development.î