The recruitment landscape has been incredibly turbulent over the past two-and-a-half years.
From the pandemic to Brexit, the war in Ukraine to the current cost-of-living crisis, businesses have had to adopt extremely agile ways of working, prepared for the next challenge that may be on the horizon. Recruitment has been especially rocked, more so in the past 6 to 12 months than ever before.
In early June of this year, 15 per cent of businesses reported that they were experiencing a shortage of workers, with 46 per cent stating that they were working increased hours because of these shortages. More recently, over three-quarters of staff reported recruitment difficulties in Q2. In such a difficult time, it’s never easy for employers and hiring managers to know which way to turn, especially when it comes to knowing what existing employees and candidates need and want from a role. Nevertheless, this is where assets such as salary guides can come in to be very useful.
Last month, we released the 11th edition of our annual salary guide, and it shone a spotlight on some very interesting findings for employers and employees alike to explore. But the key takeaway? The Technology and Data industries are leading the way when it comes to the levelling out of regional salaries.
In the report, which surveyed over 9,000 respondents, we found that certain divisions of the Data & Analytics market have seen employers paying out astronomically high salaries in the past year to both entice and retain talent out of and away from London companies.
BUT WHY ARE WE SEEING THIS?
With most employees now working remotely, spending only 1.5 days in the office – as found in this year’s guide, they have the freedom and capability to work for anyone from anywhere, with a draw to work for high-paying firms in London despite living miles away from the capital. This has forced other regional companies to bolster their salaries in the hope to retain local talent. Indeed, for the first time in four years, a lack of competitive salary is the key motivator for people to leave a role.
As a result, this year’s guide found a significant closure between London’s weightings and the rest of the UK’s weightings. Specifically in areas like Risk Analytics and Digital Analytics where the gap closed by 65% and 73% at the entry-level, respectively.
In certain cases, we can see London salaries being matched or even bettered by companies outside of London. In Risk Analytics, for example, mid-level Decision Systems experts can expect to earn the same (£55,000) either in London or outside of London. Within Marketing and Insight, entry-level Pricing Analytics candidates can expect to out-earn their London counterparts by £4,000.
DOES THIS MEAN LONDON ISN’T INCREASING SALARIES?
Not at all – London is increasing its salaries significantly. For example, a Campaign and CRM Analyst can expect 18.1% more in salary this year compared to last. The key point however is that companies outside of London are putting up a fight and meeting London’s match when it comes to salaries to remain competitive in a fierce market.
It’s certainly been a turbulent time for the recruitment market over the past two years, and things are changing once again. As companies get into the swing of cementing working strategies and procedures, they are now confronted with the uphill battle of the looming Great Resignation and an insatiable salary war.
While some divisions of Data & Analytics remain to be more lucrative for those in London, it is likely that we will see the gap between London and non-London salaries closing over the coming years as employers battle with talent shortages, employee retention and candidate salary expectations.
It wouldn’t be surprising if, in next year’s guide, we see the gap closing even further, and perhaps evening out. Additionally, it’s likely that this is a trend that we will see not only for Data & Analytics but for numerous other sectors, too.
To download a copy of this year’s salary guide, visit: https://www.harnham.com/the-harnham-data-analytics-salary-guide-2022-main