Starting salaries increase at a quick pace, for permanent staff, due to a rising demand for staff and a further substantial drop in candidate supply. This is according to KPMG, and the REC (Recruitment and Employment Confederation) latest UK report on Jobs.

Starting Salaries Increase Report

The report highlights, the rate of salary inflation is the sharpest seen in almost 24 years of data collection. The availability of candidates continued to decline rapidly in July 2021, driven by concerns regarding job security due to the pandemic, a lack of European workers due to Brexit and a generally low UK unemployment rate.

For employers, we are seeing they are desperate to find good candidates for the many jobs on offer, and this is clearly and directly reflected in the starting salaries increase report. I foresee many employees will likely be motivated by this and on the lookout for opportunities with new employers.

Starting Salaries Increase

Employee Turnover Cost

Employee turnover is part of the employee life-cycle and business in general. Whilst it’s healthy to bring new talent into your business, losing some of your best people can be very damaging to the business and remaining workforce.

This, with the added starting salaries increase will present businesses with challenges from now and throughout the rest of the year.

Nurture Employees

HR departments should as ever, continue to nurture employees.

  • Check your figures. Do you have a previously high staff turnover level? If so, it’s going to be very important that you act with professionalism and urgency now to stop this statistic developing. Reasons may include; lack of appreciation, career growth or engagement, burn out, no flexible working options.
  • Understand why people leave. Even if you don’t have a high staff turnover record, it’s important to know why staff have left in the past. Do you keep records, and act on this information? E.g. leaving interview.
  • Engage your Teams and People – Provide them with the tools for success.
  • Develop your staff – This doesn’t have to cost a lot; e.g. talks at staff meetings.
  • Establish a strong culture – Be clear about your corporate identity (mission, vision and values), set objectives and work towards them over time.
  • Recognise and reward your staff.
  • Get flexible. Do you need to offer a hybrid working system?
  • Be diverse and inclusive. Many businesses are making a recognised effort in this area. But is it still just an awareness? Can your business be more diverse and inclusive?

Starting Salaries Increase report

If you would like to review the full KPMG / REC report, click here – KPMG / REC Report.

Act Today

At the Hive Collaborative, we are able to support your business with all of the points above. Many of them you can action today. Others will take time to develop. Any productive action in the above points will mean you are one step ahead of your competitors, and employees will notice and value your actions immediately. If you are worried about the starting salaries increase report, and need support in the above areas, please contact us for assistance.

Keep you Team and grow your business.

Paul Deaves. Assoc. CIPD.

Managing Director.

HR @ The Hive Collaborative.

Tel: 01352 781965 | Email:

A member of the Professional Body for HR and People Development.

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