Brook Street, part of the leading global workforce solutions company ManpowerGroup, has released its 2023 Salary Guide for Businesses. The guide explores hiring trends and salary rates for permanent and temporary employees in UK Contact Centre, Business Administration and Support, and Accounting and Finance roles.
Despite a faltering economy, rising interest rates, supply chain issues, and the ongoing impacts of Brexit, many businesses operating within the sector reported optimism about their recruitment plans as they entered the third quarter of 2023. 44 per cent are expecting to recruit more workers, displaying a +29 per cent net positive hiring outlook.
Yet, this is because around 80 per cent of UK businesses are experiencing talent shortages with more than 1,000,000 unfilled job postings providing a persistent reminder of the state of the national workforce post-pandemic.
Together these conditions are leading to greater expectations for elevated compensation levels throughout the UK workforce. While plenty of businesses remain unable or unwilling to meet employee salary expectations, workers are becoming reluctant to pursue vacancies, and hiring is proving to be more difficult across all regions of the UK.
In Accounting and Finance, low supply and rising demand have become bad news for business. Although 33 per cent of current UK accountants plan to leave the industry in the next five years, hiring conditions are proving slightly difficult on a national level, with 102 candidates per job posting. The national average however, does not reflect wide regional disparities – for example, in Belfast where on average there are 21 candidates per post making it very difficult to hire, compared to Tunbridge Wells (Kent) where 207 candidates per post make it less difficult.
The Brook Street salary guide indicates some notable variance, including a +189 per cent difference between a temporary and permanent median salary for Accountancy roles in London. At the extremes, it also finds salary ranges in the UK can differ by tens of thousands of pounds by region. For example, the highest paid permanent median salary was found to be £61,300 p.a (based in Reading), compared to the lowest paid at £22,000 p.a. (based in Newcastle).
Leigh Passingham, Brand Leader, Brook Street said: “Business leaders who better understand hiring trends and compensation rates will make much better hiring decisions in what is currently a hypercompetitive labour market. While there is no magic bullet that will quickly fix the UK’s talent shortages and reduce the various pressures being placed on both employers and candidates, we’re advising employers to use originality, adaptability and speed. Hiring speed is really the key – those employers with speed to placement will secure the best talent.
“This means being sure on your organisation’s offering before going to market with each role,” adds Leigh, “reviewing everything from providing flexible working conditions, to apprenticeships and training development opportunities, and even relocation subsidies to attract talent into areas that aren’t punching above their weight, economically. Creativity will be key to success and those organisations willing to adapt their approach will be well positioned to overcome the most pressing labour market difficulties that we are facing.”
