Over half (57 per cent) of employers globally believe that they will lose staff in the first half of 2023 due to higher earning potential in other companies, according to new research.
The findings from global talent services company, Morgan McKinley in its 2023 Salary Guide, included 53 per cent of employees across Australia, Canada, Hong Kong SAR, Ireland, Japan, Mainland China, Singapore and the UK saying they are looking to move jobs in the first half of the year, with 45 per cent citing ‘higher salary’ as their main reason, followed by ‘better career growth and development opportunities’ (16 per cent).
The survey revealed that 69 per cent of global employers offered higher than expected salaries to attract new employees over the past 12 months. Furthermore, 70 per cent of employers think that salaries in their specific sector will rise again in 2023, with 44 per cent planning on increasing base salaries across all teams.
Over half (55 per cent) of employees are expecting their salaries to increase this year, with 58 per cent also expecting some form of bonus payout. Nearly two in three (63 per cent) global businesses plan to hire new permanent, contract or temporary workers in the next six months, according to new research.
Seb O’Connell, group CEO, Morgan McKinley commented: “Despite economic uncertainty impacting most countries, many organisations are recruiting. This appetite to hire is in response to pent-up demand lingering from the pandemic, replacements for staff turnover, driving ahead with change agendas, satisfying regulatory and legal requirements, or maximising the commercial opportunities that exist. There has been a definite shift towards a contract market in the light of global economic uncertainty. As companies watch their headcount and costs, short-term contract hiring will be prevalent.”
O‘Connell continued: “We expect to see a slight recalibration of salaries this year compared to 2022, but top talent can expect to see their pay rise when moving roles. A skills shortage remains in many sectors across the globe, creating a ‘bidding war’ between companies to secure talent, and from current employers to hold onto their staff. Combined with high inflation and increased living costs, there is upward pressure on salaries in many countries.”
O’Connell concluded: “Until the availability of talent returns, there will be competition, and the potential for higher earnings will be there. It’s important to be mindful of benchmarks – you don’t want to over-offer, but equally you need to be attractive to top performers so you don’t fall behind in the war for niche and in-demand talent. With jobseekers likely to be in multiple processes, making sure your hiring strategy is streamlined and efficient will put you in a strong position.”