Hays Salary Guide released: Salaries increase as skills shortage inflates expectations

- 88% of employers will increase salaries in their next review – up from 67%;
- 37% will award increases of 3% or more – up from 12%;
- 77% say the skills shortage has forced them to offer higher salaries than planned;
- Yet 84% of employees say an increase of 3% or more would reflect their individual performance and the demand for their skills.
Professionals say they deserve more
Employers’ salary increase intentions | Increase employees say reflects their performance and demand for their skills | |
Nil | 12% | 3% |
Up to 3% | 51% | 13% |
Above 3% but less than or equal to 6% | 27% | 35% |
Greater than 6% | 10% | 49% |
Skills shortage impacts salaries
Other key findings
- Employers hold a positive outlook: 77% of employers expect business activity to increase in the year ahead, up from 72% last year. 43% expect the economy to strengthen in the next six to 12 months.
- Hiring intentions rise: 61% of employers intend to increase permanent staff levels in FY22/23, up from 47% last year. 36% will increase their use of temporary and contract staff, up from 15%.
- Benefits increase to attract candidates: 35% of employers have improved benefits and working practices to entice more staff. Flexible working continues to evolve, with 64% of employees looking for an adaptive hybrid approach. Purpose, equity diversity & inclusion, and sustainability are increasingly on candidates’ agendas, too.
- Lifelong learning is the new norm: 18% of employers cite upskilling as their key strategy to overcome the decreased access to talent. Meanwhile, employees have upskilled in the past year to improve their job prospects – 45% grew their technical skills, 36% their soft skills and 26% their digital skills. 15% reskilled.
- Mastering change: Organisations are preparing for their future, with 34% undertaking a workplace transformation in the past year to take advantage of economic opportunities.
About Hays
Hays plc (the "Group") is the world’s leading specialist in recruitment and workforce solutions, such as Recruitment Process Outsourcing (RPO) and Managed Service Provider (MSP). The Group is the expert at recruiting qualified, professional, and skilled people worldwide, being the market leader in the UK, Germany, and Australia and one of the market leaders in Continental Europe, Latin America, and Asia. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As of 31 December 2024, the Group employed over 10,300 staff operating from 225 offices in 33 countries.
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