Starting salaries soar as businesses seek candidates

A report has revealed that starting salaries are rising at a record rate.

The Recruitment and Employment Confederation and KPMG Report on Jobs is based on a survey of 400 recruitment consultancies.

The latest survey found that average starting salaries offered in June rose by a record amount. It was furthermore the 26th month running that starting salaries for permanent positions have climbed.

Meanwhile the availability of skilled permanent staff has seen its biggest drop since the survey began in 1997. Sectors suffering shortages include business development, sales, IT and engineering.

It is a similar story in temporary recruitment, with hourly rates increasing and candidate availability falling.

Unsustainable growth?

Kevin Green, CEO of the Recruitment and Employment Confederation, commented:

"The message to UK businesses is that it is crucial to sharpen up hiring procedures in an increasingly candidate driven market."

Meanwhile Bernard Brown, Partner and Head of Business Services at KPMG, said:

"Once again employers seem ready to 'splash the cash' in what appears to be a desperate attempt to lure skilled staff from competitors."

Indeed, the simple solution to a vacant position may seem to be increasing the salary on offer. However, Brown went on to comment, "continued starting salary growth is unrealistic and unsustainable over the long term".

Why a reward manager is crucial

A talented reward manager will help you set competitive starting salaries that are sustainable and sensible for your business. They will also review and implement employee benefits packages that are cost-effective and yet appealing to employees, ensuring that once they're hired, they stay put.

Portfolio CBR specialises in recruiting experienced professionals for compensation, benefits and reward jobs. If you are in need of a permanent or interim reward manager to help you fill your skills gap, speak to our team on 020 7650 3190.