The iMultiply EmployERs & EmployEEs Survey Results are in…

Anyone working in the finance and accountancy sector just now will be all too aware of what’s become known as the ‘war on talent’.  Whether you are a finance leader trying to keep hold of great staff, or you’re just starting out in your career looking to climb the ladder more quickly – it is impacting everyone.  And you also need to have spent the last few months with your head in the sand not to also be aware of the cost of living impacting almost everyone! 

Whilst the background to these are complex and multi-faceted, we at iMultply see more than most just how the two are contributing to people moving jobs, and also what companies are doing (or not doing) in an effort to compete in this tough market.

What survey did we run?

Whilst we had some insights or qualitative information (indeed, our MD Kris recently wrote this blog all about his views on the current market) we wanted to investigate this topic more scientifically or quantitatively.  So during Summer 2022 we ran two surveys – one for employers and one for employees – and the results are interesting!

We went out to our network and gathered responses from a cross-section of both employers and employees, working in teams of various sizes and in both accountancy and finance roles (i.e. practice and industry).  And then we compared the results between what employers said compared to their employees!

Hybrid working.

The first thing we noticed was that offering a hybrid working environment was the biggest reason why people stay in a job, and if current employers don’t offer such flexibility then it’s a key reason for people to move on.  Employers told us that their approach to hybrid was the biggest reason people stay with them (correct), and yet rather strangely when we asked employers what made people move on hybrid only came fifth on this list!  So it appears that most employers seem to think they are doing a great job offering lots of flexibility with hybrid, and yet employees are still searching for more.  So those companies starting to force people back to the office more maybe need to take heed!

Why staff move on?

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When we asked employers what it was that made their team members start thinking about a new job elsewhere, they said it was mainly career progression.  And yet employees completely disagree, it’s actually basic salary that drives them to move, followed by (as we’ve said above) a different approach to hybrid working.  So the next time you are in an exit interview, and the team member says they just feel it’s a natural step in their career progression – maybe think twice? Or better, dig a bit deeper!

What about salary?

So there has probably always been a bit of a disconnect between employees hunger for more money and employers willingness to pay to keep them, so what more could this survey find out?  Well, we asked employers what they thought they would be offering team members by way of a salary increase in the future, and average response was a 4% salary increase for current staff.  When we asked employees what they were expecting it was more than double – 9%!  Wow, that seems to incidate there could be quite a few disappointed people out there as firms gradually go through salary reviews in the months ahead.

But does this chime with what we’re seeing in the market just now?  Well we hold some interesting data on what salary increases people are currently achieving if they do choose to move jobs, and the average figure we arrived at was 21%.  Yes, so if you’re an employee reading this (most people are!) then on average you will be expecting a 9% increase, your employer is likely to offer 4%, and if you chose to move roles instead you on average would get 21%.

 

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So what should employEEs do?

Well as we say, some interesting results but what should you dear reader actually do about it?

Well, if you’re an employee then maybe manage your own expectations about what your employer might offer you in the months ahead.  It seems unlikely to keep pace with inflation, so for most you probably will (ultimately) see a negative impact to your disposable income & quality of life.  So whilst this might be a very predictable thing for a recruitment business to say, maybe now is the time to start thinking about your value in the market and what a move might look like?

And what should employERs do?

And if you’re an employer, well here we’ll be completely honest (and not at all self-serving).  Tthink hard about the value of your exisitng team.  What are they really worth to you, what salary might you need to go to if you wanted to replace them, and critically (we think!) when you do the maths and include on-boarding, training costs and recruitment fees should you actually reconsider that salary increase you have currently budgeted for!?

A bird in the hand is worth two in the bush.  Albeit if you do accidently let go of the one in your hand, then you know where we are!  😉

 

For more advice or support please contact Kris Flanagan, Managing Director at iMultiply or one of our specialist team, details available on the ‘Meet the Team’ page of our website

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