To win the global talent war, employers need to offer attractive compensation, said Morgan McKinley recently when releasing its 2023 Salary Guide.
Research from businesses and professionals was conducted among 3,860 employees/professionals and 636 employers/hiring managers to find out what companies’ hiring intentions are for 2023, whether there is an appetite to change jobs, and what the expectations are for movement on salaries, the firm noted.
According to the guide, 53% of employees across Australia, Canada, Hong Kong SAR, Ireland, Japan, Mainland China, Singapore, and the UK are looking to move jobs in the first half of the year, with 45% citing ‘higher salary’ as their main reason, followed by ‘better career growth and development opportunities’ (16%).
In addition, 57% of employers globally believe that they will lose staff in the first half of 2023 due to higher earning potential in other companies.
- 69% of global employers offered higher than expected salaries to attract new employees over the past 12 months.
- 70% of employers think that salaries in their specific sector will rise again in 2023, with 44% planning on increasing base salaries across all teams.
- 55% of employees are expecting their salaries to increase this year, with 58% also expecting some form of bonus payout.
- 63% global businesses plan to hire new permanent, contract or temporary workers in the next six months, according to new research.
Despite economic uncertainty impacting most countries, many organisations are recruiting, said Seb O’Connell, Group Chief Executive Officer, Morgan McKinley.
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, he added.
“There has been a definite shift towards a contract market in the light of global economic uncertainty,”he noted. “As companies watch their headcount and costs, short-term contract hiring will be prevalent.”
O‘Connell expects 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.
The global talent war will continue as the skills shortage remains in many sectors across the globe, he pointed out.
That creates a ‘bidding war’ between companies to secure talent, and from current employers to hold onto their staff, he added.
Combined with high inflation and increased living costs, there is upward pressure on salaries in many countries, he predicted.