£150,000 starting salaries as firms fight for staff
£150,000 starting salaries a...
Subscribe to Newsletter

£150,000 starting salaries as firms fight for staff

12 January 2022
2386
3 min.
£150,000 starting salaries as firms fight for staff

A professional recruitment firm says it is placing graduate lawyers at top firms on starting salaries as high as £150,000 amid a shortage of workers.

Alan Bannatyne, chief financial officer at Robert Walters, told the BBC people in many UK industries were quitting for better paid jobs amid soaring demand.

"15% is the minimum pay rise we're seeing, but some are increasing their salaries by up to 50%," he said.

"Unless something significant happens, 2022 should be even better for staff."

UK job vacancies have hit record levels since the economy reopened as employers scramble to meet demand.

Robert Walters, which focuses on placing professionals in roles, said this had put firms in a "fierce competition for talent" and it was "incredibly hard to find the right people".
 
Employers have put up salaries to attract workers, although Mr Bannatyne said there had been "winners and losers" from Covid and not everyone was in a position to pay well.

"Bricks-and-mortar retailers and airlines have really struggled so will probably not be paying bonuses or giving pay rises," he told the BBC.

"So they become a hunting ground for other high growth businesses, such as online retailers, anything to do with technology and digital, and manufacturers of household goods."

Robert Walters, which has offices in Asia, Europe and the US, said it had seen its best December ever, with net fee income up 39% globally.

Recruitment agency Manpower said it was seeing a similar trend, as employers struggled to fill vacancies for highly-skilled positions.

UK director Chris Gray told the BBC: "It is absolutely a candidate-led market right now.
 
"Those with the in-demand skills hold the power, and have the freedom and flexibility to accept a job that suits their particular needs and expectations."

Skills shortages have been particularly pronounced in sectors such as law, where vacancies for London-based associates rose some 131% year-on-year between January and November last year, according to research from recruiter BCL Legal and data firm Vacancysoft.

According to Robert Waters, there is a shortage of recently qualified lawyers, while reports point to an increase in experienced practitioners quitting the industry.

In addition, UK legal firms face intense competition for talent from US law firms expanding in Britain. It's led to newly qualified lawyers at top London firms being offered salaries of over £100,000 before bonuses.

According to the Law Society, in 2018 the average salary for solicitors working full-time in private practice was £62,000 a year (rising to £88,000 in London).

City banks have also boosted starter salaries to retain talent and Robert Walters predicts the bonus pool this year will be "huge".
 
Wages have also been increasing in lower paid jobs. Last week, Sainsbury's became the latest supermarket to pay shop workers at least £10 an hour, following similar moves from Morrisons, Lidl and Aldi.

Many workers have revaluated their careers during lockdown and changed jobs or left the workforce, in what some have labelled the "great resignation".

It has helped to drive up salaries across the UK, with growth in average pay including bonuses standing at 4.9% year-on-year between August and October.

James Reed, chairman of recruitment agency Reed Recruitment, said the UK was in the midst of a "jobs boom" that showed no signs of abating.

"It's the best time in 50 years to look for a new job, in a situation where the pendulum has swung in jobseekers' favour."

Source: https://www.bbc.com/news/business-59949697

Tags:
Section:
Rating companies

ENGLAND NEWS


News GlobalEng.biz -this is the latest and most up-to-date information about the resonant events that have occurred in the region. The task of the resource's news feed is to convey to readers information about important events in business, politics, economics, healthcare, culture and other spheres of life in England with maximum accuracy and objectivity.
News GlobalEng.biz - this is coverage of the economic processes taking place in England, the latest news of public life, incidents and an overview of political events. English news is information about the activities of small and medium-sized businesses, the work of housing and communal services, the implementation of significant projects. The site's journalists describe not only the life of the region, but also talk about the current state of the English economy. Everything you need to know about innovations in the field of industry and agriculture, economy and government is collected in the "News" section on GlobalEng.biz.
News of England promptly informs the reader, shows the real picture and opens up topical topics. Communication with government structures and business gives us the opportunity to provide our readers with reliable, information-rich material.
The main page of the portal contains the key news of England!
Alena Potapova

Development Director
Population
8126098498
Died this year
23475524
Born this year
57753944