Recruitment trends have always been a surefire way to gauge the state of the economic climate. The ability to understand the sentiment of employers and employees and react accordingly will be key to ensuring that a market continues to grow. Salary guides are a foolproof way to see how ‘trends’ are playing out in real life and how the sector is responding.
In June, we released the 11th edition of our annual salary guide, which revealed how the past two years have impacted the US Data & Analytics Market and the considerations that employees have.
With US inflation now reaching 9.1 per cent driven by the surging costs of food, fuel and shelter, and considering the recent economic downturn across the globe due to COVID-19 and the war in Ukraine, it’s hardly surprising to see this impacting employee mindsets.
The report, which surveyed over 9,000 respondents, revealed that cash is once again king, outdoing benefits such as career progression and flexible working – both of which have dominated as the top career motivators for four years. The inference is that candidates are becoming increasingly concerned about the next phase of financial difficulty and are turning to their employers for monetary support.
Despite clear calls from the workforce, the challenging landscape demands businesses to maintain a balancing act between retaining their talent and competitiveness and contributing to an ever-surging salary war that they cannot afford or sustain.
That being said, our findings revealed that most companies are largely taking notice of and heeding these requests. From the data gathered, it was concluded that, on average, candidates across the US achieved a 12 per cent pay rise when moving to a new role in the past year. In some divisions, this has been significantly higher. For example, salaries at Manager Level with Web Analytics have increased by a huge 85 per cent from $118.5k in 2021 to $219.5k in 2022.
BUT THERE IS CLEARLY AN APPETITE FOR MORE
Whilst these increases may appear significant, employees are still pushing for more. Findings from the report showed that, when seeking a new role, candidates were looking for a salary increase of 20 per cent. However, the amount achieved when moving roles was, on average, 12 per cent across all divisions.
These salary rises may not have been enough to satisfy employee expectations, but they do reveal that employers are exercising caution when it comes to hiking salaries to unsustainable levels, a move that will likely serve the industry’s long-term interests well. Over-inflating salaries would have significant economic ramifications, delaying recovery with a period of the further downturn on the horizon, following inflation rises across the globe.
BONUSES ARE STILL IN PLAY
However, it’s clear that employers still want to ensure they support people through the current financial crisis and secure top talent. As a result, they are looking to help employees through alternative means such as bonuses. Indeed, 74 per cent of respondents received a higher bonus than last year with most receiving 15 per cent on top of their annual paycheck.
And while cash may be the flavour of the year, other benefits still have their part to play. Of the 28 per cent of candidates who received a counteroffer, nearly a third of these still left that position within the year, pointing to a yearning for more than just a better salary. The preference for remote working options, for example, is very much still relevant as the second most desirable benefit for candidates across the board, with flexible working options and bonuses also featuring in the top five.
WHAT HAVE WE SEEN OF THE GREAT RESIGNATION?
Despite talk of a “great resignation” there seems to be an increased reluctance from candidates to move roles than in previous years. Over 70 per cent are either actively looking, or willing to move for the right opportunity, but this is down from nearly 80 per cent of respondents in 2020, albeit a similar number to what we found last year.
Amid this atmosphere of uncertainty, it has been positive to see that employees are continuing to view Data & Analytics as a stable career choice. Across the US market, 92 per cent of candidates reported feeling as or more secure in their role than they did in 2021.
Despite the fluctuations of the past two years, as well as economic uncertainty, our findings signal an industry that’s thriving and maturing. We will not know the full extent of the financial climate for many months to come, but when it is able to regain its buoyancy, we’re sure to see flexibility and career progression reclaim its position as head of the pack.
To download a copy of this year’s salary guide, click here.