A Small Victory For Salaries
It is anticipated that overall salaries will increase from 2.4% to around 2.9% in 2017 but after factoring in UK inflation, these will still be the 3rd lowest wage increase in Europe. Due to the instant fall in the value of the pound post-Brexit, it’s predicted that the higher living costs will deplete the actual wage increase.
From the 1st April, the minimum wage for those over 25 will increase from £7.20 an hour to £7.50 this is a 4% rise and will average out to around an extra £500 a year. Whilst this will be a bonus to those in minimum paid work it is still a shortfall of the real UK Living Wage of £8.45. The real Living Wage is independently calculated and is based on what families need to earn to meet everyday costs. Some Employers have adopted this scheme but currently, it is only voluntary. Full-time employees earning the real Living Wage earn £45 a week more than those on the government minimum. For those running Businesses paying the real Living Wage can have many benefits. Two-thirds of employers reported an improvement in recruitment and retention and that absenteeism had reduced by 25% on average. As well as improving the quality of life for employees it also helps to identify the organisation as an ethical forward thinking company.
So, while those at the lower end of the salary spectrum have a small increase some industries are seeing income rises of more than 15%. The recruitment industry is just one of those and has seen one of the highest year on year salary increase with some recruiters benefiting from a 17.5% yearly income growth. Other industries experiencing above average growth include legal, hospitality, property, accounting and finance. It appears that due to a widespread shortage of skilled workers, Companies are being forced to increase salaries to attract workers. This is great news for those seeking work as companies become more competitive in their search for skilled workers. For Employers looking for candidates with specific skills or talent using a recruitment agency could be an advantage. We take on the leg work for you as we personally pick candidates that meet all your requirements. For those searching for a new job we often have the pick of the best positions as we deal directly with the companies recruiting. Using a recruitment agency like Recruit Mint can be the best of both worlds.
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