Employers brace for ‘talent exodus’ as people seek better pay

Over half (58 percent) of employers in the UK believe that they will lose staff in the next six months as they seek to earn more by moving jobs, according to a new poll. According to the survey by talent services company, Morgan McKinley for its 2023 Salary Guide, 56 percent of employees in the UK are looking to move jobs in the first half of the year, with 49 percent selecting better pay as the primary reason, followed by ‘better career growth and development opportunities’ (17 percent).

The survey claims that 72 percent of employers had to offer higher than anticipated salaries to attract new employees over the last year. Furthermore, 74 percent of employers in the UK think that salaries in their specific sector will rise in 2023, with over half (56 percent) planning on increasing base salaries across all teams.

55 percent of employees in the UK are expecting their salaries to increase this year, with 59 percent also expecting some form of bonus payout. More than half (56 percent) of businesses plan to hire new permanent or contract employees in the next six months.

David Leithead, Chief Operating Officer of Morgan McKinley UK, commented: “Whilst the economic downturn will be on many employers’ minds and is bound to depress the hiring market to an extent, there is a strong sense that the kind of talent that can contribute to progress and improvement will remain in high demand. The underlying business needs for talent do not change.”

“Generally speaking, there was strong wage inflation associated with moving jobs in 2022. Many companies tore up the rule book, ignored salary guides, and simply pulled out all the stops to secure talent. The sense of competitive bidding was exacerbated by the determination of the hirer being matched by the current employer not wanting to lose their employee. We don’t expect to see such widespread increases this year, but they are likely to recur in areas where the shortage of skills is acute.”