Salary hopes put pressure on business
Salary expectations are a growing source of tension between businesses and employees in 2012, according to a new employment report.
iv>Hudson’s Salary and Employment Insights 2012 series of reports has revealed that nearly seven out of 10 employees are considering moving jobs in 2012, while two-thirds of employers say they are worried about losing their existing high performers. Six out of 10 employees feel that they deserve a pay rise this year.
“Employers are under pressure to simultaneously improve the quality of their hires and control the cost of these hires. They need valuable employees to take the business forward, but not at any cost,” said Mark Steyn, CEO, Hudson Asia Pacific.
“Facing the tension of trying to do more with less is especially difficult when salary is the top driver for 36 per cent of employees, with many believing that it will be ‘easy’ or ‘very easy’ to find a similar job with comparable pay and conditions.”
According to the report, nearly 34 per cent of employers intend to increase permanent staff levels in 2012, but almost half of hiring managers say the salary expectations of preferred candidates exceed their budget. Approximately 43 per cent of hiring managers will increase their budget to secure the best candidate, while the remaining employers will settle for their second choice.
“Salaries are increasing, particularly for talented mid to senior hires,” said Steyn. “In challenging times, businesses can’t afford to compromise on investing in their people, but at the same time they face a dilemma with corporate growth rates lagging employees’ heightened salary expectations.”