HR Insights: Moving jobs…is it all about pay?

The latest Macmillan Davies HR Insights Survey was launched at the end of 2022 to look at what the future of the HR profession looks like, and the impact the current economic climate is having on career choices. We are delighted to share some of our interim findings, which highlight just how many factors are at play when it comes to moving jobs.

93% of HR professionals and members of the C-suite are worried about today's economic climate. 74% of respondents state that the economic and cost of living crises have had some impact on their career decisions in the last 12 months. With 18% saying it will impact the career decisions, they make in the next 12 months. It, therefore, comes as no surprise to see a drop in remuneration satisfaction since our pre-Covid survey in 2019, and ‘increased remuneration’ being cited as the top most important factor when switching jobs by 61% of respondents.

Increased remuneration is followed by career progression, company culture and a better work/life balance. This reflects what we see day to day in the candidate market where increasingly, candidates hold more power and need to be tempted to look outside of their current role by attractive salary increases. However, it is positive to see many professionals still valuing career security, hence career progression featuring highly. With this in mind, it is a surprise to see training and development as the least important factor when it comes to moving jobs.

Punchy pay increases

We’re all aware, that the increased cost of labour, mainly in the private sector, has been largely due to shortages of available candidates, and the salary inflation we’ve seen over the last year or so is set to continue. Over the last 18 months, we’ve seen employers take some drastic short-term measures to attract and retain valuable team members. Quite often the simplest short-term measure is to offer increased salaries. We’ve seen candidates moving from one company to another for pay rises often ranging from 10%, to in some instances 40%. This is reflected in our results with 54% of respondents stating they would only move for at least a 10% pay rise, with 22% stating this would need to be at least 20%.

Changing ways of working

When looking at how many days HR Professionals work from the office, the most popular answer was two days a week. This did not significantly vary by seniority or by sector. However, during 2022 we did see an increase in vacancies for roles requiring HR professionals to be in the office 4-days per week. Alongside candidates being able to move for increased remuneration when venturing onto the employment market, there is now a vast difference in where they are expected to spend their working week and for how many hours. For ourselves, as recruiters it’s often the first question we’re asked, ahead of salary, when discussing a new potential opportunity with a candidate. We know this will continue.

Bountiful benefits

The seismic shift in the workplace over the last few years has also seen a change in how respondents rated their top benefits. In 2019 the top two benefits were bonuses and pensions. Today, flexible working and a favourable hybrid working pattern take precedence, followed by pensions, bonuses and increased holiday allowance.

From speaking with numerous C-Suite HR leaders we’ve found positive feedback around productivity when employees are spending their working time in a fashion that doesn’t include a rush hour commute, 5 days per week. Likewise, many candidates have been tempted to switch employers as they wish to move to a company that encourages them to follow other pursuits in or around the ‘traditional’ hours of work, be that family interests or personal objectives. It may be a switch to a 4-day week, a shorter contracted week or a degree of flexibility in expected hours of work. In 2023 those employers not offering more favourable working patterns may see increased resignations followed by an inability to attract talent, irrespective of their geographical location.

Economists have cited part of the increased labour shortages to more experienced employees not returning to the workplace after the pandemic and taking early retirement. Many candidates see early retirement as an attractive lifestyle choice, which explains the popularity of pensions as a benefit.

A bonus has never really been a reason to join a business, but it can often play a large part in somebody leaving a role. With short-term inflation and increased mortgage costs employees are looking to really enhance their total reward.

The in-demand benefits of 2023

In 2023 we are seeing a lot more responsible employers offering their employees financial advice and support due to what we’ve seen recently regarding the cost-of-living crisis. Another increasingly sought-after benefit is enhanced private healthcare cover due to shortages in supply of available NHS care.

So, is it all about pay?

Yes and No. Whilst pay is still incredibly important, there are many other factors to consider when considering the decision to move jobs, and we have seen that come into play with pretty much every candidate we have spoken with in the last 12-months.

Candidate expectations are much higher than they have ever been before, and businesses that are unable to demonstrate and communicate the whole package they offer, whilst displaying an element of flexibility, will struggle to recruit and retain their staff in 2023.

Survey Results

The full survey results will be released imminently. To ensure you get your copy, please contact our Head of Marketing, Hollie Coyne at hcoyne@mdhr.co.uk