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The Impact of Inflation on Recruitment

With the cost of living at a 30-year high. People are being forced to make drastic lifestyle changes and financial sacrifices with three quarters of Britons wanting to change jobs in search of a higher salary.*

Whether you’re a job seeker weighing up your options or a business planning your next steps, take a look at our key findings and advice below.

Candidate market

Several factors will become more relevant for candidates considering a new role:

 

  • Hybrid working is crucial as job seekers turn down roles that require lengthy travel
  • While working from home does save on commuting costs, remote staff will have to battle with higher energy bills and may request subsidies from their employers to help cover this
  • Flexible working hours will be more in demand than before and many will avoid applying without that option
  • More candidates looking for higher salaries to cover higher costs, as well as benefits and perks that allow them to maintain lifestyle choices
  • Increased applications to local jobs as job seekers look to cut their fuel spend following recent price hikes

Impact on businesses

  • The current labour market and candidate shortages is forcing employers to raise wages to retain staff as well as creating more attracting salary and benefits packages to bring in new starters
  • Businesses looking to the government for support with many companies concerned that the rising cost of living will impact staff retention levels.

In a candidate driven market, and unfilled vacancies at record levels, employers who are not giving at least some sort of hybrid option will miss out on the best talent. Now is the time when offers will be vital in retaining and attracting talent for the foreseeable future and businesses will need to balance their own increased costs with the salary needs and expectations of job seekers.

How to know if you should quit your current job for more money? While a new company may have the resources to pay you more for your talent, you may already be getting paid fairly for your role. If the new offer lists more duties or has harder tasks, you may be signing up for more money and more responsibilities. Consider having an open discussion with your manager about pay to answer any final questions. 

MARS Recruitment is a leading Technical Recruitment Agency in Oxfordshire. If you would like to engage a Recruitment Consultancy which really goes the extra mile to understand and ensure that we’re placing the right individuals into your business, please do not hesitate to get in touch for an informative discussion around your recruitment challenges.

Or if you’re considering your next career step, search our current IT Jobs and Engineering Jobs.