A new survey has shown that most professionals are happy at their work, but remuneration is still the predominant reason people move on. Paul McClatchie delves into the results.
The rising cost of living, combined with the talent shortage, is a sure-fire recipe for pay inflation.
However, a new survey by recruitment company Engage People shows mixed fortunes in the financial and legal sectors regarding remuneration over the past year.
Despite this, however, most professionals surveyed appear to be happy at their work.
While 63 percent expect a salary increase over the next 12 months, almost a quarter (23%) of the 795 people questioned did not get a pay increase in the past year. Eleven percent was the average increase in salary for those who did.
Sixty-one percent saw their hours impacted by COVID-19, and 47 percent took a COVID-related pay cut. Of those, the average drop in pay was 12 percent.
Anecdotally, the flexibility to work from home has saved employees money and contributed to a better work/life balance. So, a short-term impact on compensation hasn’t upset too many in the professions.
On top of base salary, many professionals will have a car allowance and fuel cards. Most get an employers’ pension contribution, meaning total remuneration is generally higher than basic pay.
In terms of bonuses, 75 percent of respondents in accountancy, banking, financial services and legal roles say they received a bonus last year, and 67 percent of those were satisfied with the level of bonus. For junior positions, 26 percent of base salary was the average bonus, where earnings were predominantly under €35,000.
Ten to fifteen percent was the mean annual bonus in the accounting area, with higher bonuses in banking relationship manager and sales roles.
Although 82 percent of respondents claim to have worked some form of weekly overtime for up to three hours a week, just 41 percent received paid overtime. Again, overtime was more common in junior-level roles, up to a €40,000 base salary.
Fifty-five percent anticipate their company’s staff numbers will grow over the next 12 months.
The lure of a new role
Despite the possible pay cuts and overtime, 84 percent of the professionals responding confirmed they are happy with their current work-life balance.
However, the grass is always greener.
Fifty-eight percent of professionals in financial and legal roles are satisfied or very satisfied in their current role, but almost two-thirds (62%) admit they would leave their role if the right opportunity came up.
Pay remains the top motivation to move, and a 10 percent salary increase was the average expected by those surveyed to leave their job for a new role. However, 58 percent also said that they would turn down an offer if their current employer were to make a suitable counteroffer.
The survey also identified career progression opportunities, the people in the company, and the company culture as reasons people will move to a new role.
In terms of desirable benefits employers can offer, the top answers concerned flexible working, including both hybrid working and flexi-time. The offer of career breaks and a company car or a car loan were the next most sought-after perks.
Paul McClatchie is the Founder and CEO of Engage People.
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