Six out of ten employees could switch jobs in 2023

Employers could have a fight on their hands to hold onto their staff this year – six in ten (60pc) workers could potentially change jobs in 2023 and almost one in three (30pc) are definitely considering it.

These are the findings the Excel Recruitment Employee Feedback Survey (Appendix), released in tandem with Excel Recruitment Annual Salary Guide 2023 (Appendix), which show that in terms of salaries across the board, the recruitment specialists are seeing a percentage swing of increase in the median of 3-11%.

The new research has revealed that while this time last year[1], 65pc of employers signalled salary increases in the upcoming year, this has risen to 71pc 12 months later, as most employers say pay rises are definitely being considered.

Barry Whelan, CEO of Excel Recruitment spoke of the publication of the new research,

“The 'Great Resignation' of 2022 has massively affected employers, especially when organisations urged workers to return to their respective offices. It led to companies increasingly having open positions, which caused disruptions in their daily operations. The remaining employees needed to compensate for the lack of manpower leading to immense workloads and also driving employee burnout which affected their overall performance and productivity.

As well as driving up wages, high employee expectations are forcing more employers to offer a hybrid working option. The desire for remote work and the ease of applying for new roles in a remote setting will continue to drive churn in the labour market. Where possible, hybrid working models were introduced across most industries and have become an expectation rather than a benefit.”

The Salary Guide

Excel Recruitment are reporting salary increases of up to 11pc in 2022 particularly in the areas of professional services, commercial, accounting and finance, where pay rises of between 6pc and 11pc were recorded. Salary increases were also strong in retail, with rises of between 3pc and 8pc recorded. Wage growth in the industrial sector, such as for forklift drivers and heavy goods vehicle (HGV) drivers, was between 3pc and 5pc.

Commenting on the 2023 Salary Guide, Mr. Whelan Excel Recruitment said:

“laTowards the latter part of 2022, we saw staff shortages and increased employee expectations forcing employers to loosen their purse strings – with starting salaries shooting up by an extra €5,000 in certain sectors. Going into 2022, marketing executive salaries started at €30,000 but now we rarely place a candidate for less than €35,000. The salaries of sales business developers typically started at €35,000 but now it’s closer to €40,000. The sales and marketing jobs we are seeing the most demand for are marketing managers and e-commerce managers – where average salary bands are now between €55,000 and €70,000 – and most candidates are having up to five interviews. Therefore, it is imperative that employers go in with the best job offer to avoid getting into negotiations.”

Excel Recruitment say that the staffing situation in hospitality is “quite dire” and the increases that are being paid to attract new hires and retain current staff are putting businesses under severe pressure.

Mr. Whelan continued,

“Rates of pay from entry-level commis chefs all the way to chef de partie have increased. The average chef de partie salary will soon reach approximately €40,000 per year to try to attract and retain talent.”

Sector highlights from the Excel Recruitment Salary Guide 2023 include:

Some of the biggest staff shortages in accounting and finance are in the junior office support roles. “We have seen significant salary increases on this end with starting salaries between €26,000 and €28,000 today - which historically would have been around €23,000 to €25,000 pre Covid,” said Mr. Whelan.

Wage growth has also been strong in the grocery retail sector, particularly amongst those working in fresh food. “Deli specialists, bakers and butchers are in highest demand,” said Mr. Whelan. “The salary increases we have witnessed over 2022 closely reflect this. We have also seen an increase in demand across all entry-level management roles, and this, coupled with the increase in minimum wage, have led to an upwards spike in these salaries as well.”

“Much like last year, candidate shortages have impacted the warehousing and industrial sector and this, coupled with the cost-of-living crisis has drove salaries upwards across the board,” said Mr. Whelan. “There has been a real shortage of candidates at operative level due to low unemployment rates – as well as the lack of migrant workers choosing Ireland. We have also seen a real shortage of experienced forklift drivers, and this has led to hourly pay rates increasing from between €12 and €13 to between €14 and €16.”

There has been a real shift in focus in the retail sector over the last year. Mr. Whelan explained,
“Where the preference now is towards offering not just a higher basic salary but a more comprehensive package, with a special focus on work-life balance and working hours.

"Many big retailers have reduced their working hours from 48 or 45 weekly hours to 39, with 40 fast becoming the new industry norm. Fashion retailers have also started to reduce working hours in a bid to retain and attract staff, with some even trialling and introducing a four-day flexible working week for their management and their colleagues”.

Excel Recruitment are reporting that unlike 2022, it is likely that salaries will level off within the construction and engineering industries in 2023 – due to an expected slowdown in inflation this year, the staff shortages in those sectors not been as acute as in 2022, and construction projects in the pipeline likely to be slow to get off the ground.
The Workers of 2023

The Excel Recruitment survey of 1800 workers nationwide an insight into worker expectations and sentiment in 2023:

More than half (55pc) of workers expect a pay rise in 2023. Only a small fraction (15pc) of workers don’t anticipate any pay increase at all.

Almost one in ten (8pc) job seekers said they had quit an in-person job to look for a work-from-home position.

Outside of salary motivations, the second biggest concern for workers when it comes to their job is career progression - with 21pc of workers stating that moving-up-the-ranks is the most important thing to them in job, which was three times the number who cited flexibility as their key priority. Only one in twenty (5pc) cited location as their top priority when choosing a job – though interestingly, less than one in three (29pc) would be prepared to relocate for a job.

36pc of those polled gave a flat ‘no’ when asked if they would be prepared to relocate for a job while 35pc were uncertain
Mr. Whelan concluded,

“We have experienced the impact of the burgeoning job market throughout 2022 and the severe lack of candidates to meet these demands. As a result, we have seen a growth in candidates' power to influence their terms of employment, creating truly a ‘Candidates Market’. This trend will continue to become more granular as applicants' needs are addressed and employers add more bespoke benefits in 2023.

Companies must adapt to today's new normal, and this includes modifying their workforce methods according to the needs of today's workers. It should incorporate a win-win situation between employers and their staff, as this will help attract candidates and retain them.

Onboarding new staff along with hiring budget constraints will likely be one of the biggest and most critical challenges for companies in 2023”.