Talent: salaries increasing by up to a fifth
Talent is at a premium and demand outweighs supply three-to-five fold in all disciplines and at most levels
23 March 2022
The 'Great Talent Crunch' is hitting hard with demand outweighing supply leading to salaries being increased dramatically across the board, according to a study carried out by The Longhouse.
There have been 10 to 20 per cent increases in salaries in most instances in the last six months alone, the report found. At junior, mid and emerging management level the 'crunch' has been caused by talent borrowed from overseas returning home as a consequence of both Brexit and the pandemic.
At a more senior level - lifestyle changes, focus on consultancy roles, moves out of London, investment in their own business or a wholesale career change have shrunk the market, The Longhouse has found.
According to the report, agencies need to recognise that the very best candidates are receiving multiple offers, often compounded by 'buy-backs' from their existing employers. Good candidates have more choice than ever. However, the report warns that the trend of early/over promotion and overpaying for level and experience has an impact on learning, skills and confidence and can lead to candidates bounding out of roles that stretch them too much.
For freelancers, the picture is similar but even more acute with talent able to pick and choose contracts and moving quickly from one to the next. Good candidates will always get multiple offers, which can prove frustrating for those trying to secure them, says The Longhouse.
Both day rates and pro rata salaries for fixed-term contracts have gone up in parallel with permanent salaries.