This is possibly the busiest and most vacancy rich I have ever seen the market…. I don’t think we have a single client that isn’t recruiting for Systems Engineers right now!
As always some are paying more than others with some clients paying what was a very reasonable £55,000 salary six months ago….But the difference is, other organisations have the same vacancies advertised at £70,000-£80,000 – and they are often recruiting for EXACTLY the same candidate!
I believe this is happening for a number of reasons….
Demand has increased for experienced/ qualified candidates, and to attract what were traditionally contractors, businesses have thrown open the cheque book and offered salaries that are way above market rate!
Other businesses however are standing strong. Maintaining the “pre pandemic” market rate salary of £55,000.
But what is the “right” thing to do here? What will be right for the long-term?
The Scenario will play out like this…
Client X has 20 open vacancies. They cannot fill these vacancies as they aren’t paying the elevated market rate that other’s are advertising and offering.
Candidate Y tells Client Z, that Client X isn’t paying the demanded elevated rate, and this gives Client Z a great place to poach experienced candidates from.
Now Client X has 30 open vacancies, and the work force has become stressed and overworked and their heads will get turned by Client Z who are paying more. Resulting in an even more stressed and over worked group of employee’s left at Client X.
This is now resulting in a negative effect on the delivery of work, which then leads to upset customers.
Projects and customers are lost.
Employees have left the business.
The word spreads in the market life wildfire. The damage is done and it can take years to reverse this damage.
Although I don’t believe that this elevated market rate can last forever, and that it will naturally calm in the coming months/year…. I don’t think that clients can afford not to pay the “market rate”.
My advice to clients?
Be flexible and move with the market.
If you don’t, your current employees will easily have their heads turned, you’ll struggle to hire and it’ll end up costing you more in the longer term both financially and your reputation.
Feel free to contact me if you want to discuss this firstname.lastname@example.org