The investment market gag … the risk of salaries not matching inflation
As the festive period dawns and winter draws near, everyone will be considering how to balance increased energy costs with rising inflation. As the cost-of-living sores, the push for employers to implement across the board increases in the basic salaries of employees continues to be an impeding and imminent question.
Naturally, employers continue to be hesitant to bite the bullet and absorbed additional fixed costs when the global economy and investment markets remain in turmoil.
However, from a candidate perspective, we are now witnessing uncharted industry sentiment and change. Candidate expectations from their employers are changing and candidate interest in some of Scotland’s largest and most premium employers is waning.
Why? This is partly down to a limited and tight candidate pool where candidates can command higher than average salary expectations, however there is one key correlation.
Personal earning levels are dropping. As cost-of-living increases, disposable income drops, the spiralling cost of living results in more employees being open to considering external market moves.
It’s not rocket science. People are feeling the pinch, at all levels, and if there is more earning potential in an alternative employer, and lack of recognition or support from their current employer, heads start to turn, and employee loyalty dries up.
People are feeling the pinch, at all levels, and if there is more earning potential in an alternative employer, and a lack of recognition or support from their current employer, heads start to turn, and employee loyalty dries up.
Betsy Williamson CEO, Core-Asset Conulting
