Author: Laurie Havelock
Recruitment firm Robert Walters says wages are bring driven up by a “fierce competition for talent”, with shortages of staff across all locations and sectors.
The UK’s shortage of workers is so severe that some starting salaries are 50 per cent higher than usual, a recruitment company has warned.
Robert Walters said wages were bring driven up by a “fierce competition for talent”, with shortages of staff across all locations and sectors.
Alan Bannatyne, the firm’s chief financial officer, said that many UK workers were quitting for better-paid positions as hiring companies had a record demand.
“15 per cent is the minimum pay rise we’re seeing, but some are increasing their salaries by up to 50 per cent,” he told the BBC. “Unless something significant happens, 2022 should be even better for staff.”
The latest official figures show that there were 1.22 million job vacancies in the three months to the end of November, 434,500 more than were registered pre-pandemic.
Robert Walters said that the legal, commerce, finance and technology sectors were currently the hottest markets for hiring.
Figures published by recruiter BCL Legal and data firm Vacancysoft on Monday showed that newly qualified lawyers at the top firms are now earning as much as £147,000 as a starting salary.
Robert Walters posted its best-ever month in December, sending group-wide net fee income up 39 per cent year on year to £95.1m in the fourth quarter.
The firm’s net fee income rose 21 per cent over 2021 as a whole.
Founder and chief executive Robert Walters said: “We are seeing candidate shortages across all locations and disciplines, a fierce competition for talent and wage inflation kicking in, which together create huge opportunities across the recruitment market.”
The firm said UK net fee income rose 7 per cent to £16m in the final three months of last year.
The group said in July last year that salary hikes of up to 30 per cent were “commonplace” for some hard-to-source roles across the UK as the hiring crisis took hold.
The recruitment sector has been buoyed worldwide as economies have reopened since the early lockdowns in the pandemic, with Robert Walters seeing strong trading across all its international operations.
It notched up the strongest growth in Asia Pacific over the fourth quarter, with a 56 per cent rise in net fee income, with Europe ahead by 36 per cent and a 48% jump across its other overseas markets division.