Starting Salaries

 

£150,000 starting salaries as firms fight for staff

A professional recruitment firm says it is placing graduate lawyers 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."

Robert Walters, which focuses on placing professionals in roles, said firms were in a "fierce competition for talent" and it was "incredibly hard to find the right people".

As a result, Mr Bannatyne said salary inflation was the highest he had seen in 20 years, although there had been "winners and losers" from Covid and not everyone was in a position to pay well many business listings.

"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.

·         Sainsbury's raises pay to £10 an hour

·         Starter salaries rise at the fastest rate in 24 years

·         Job vacancies surge past one million in a new record

Demand in the final three months of the year was strongest in the Asia Pacific, it said, but the trend of staff shortages was apparent worldwide, including in the UK.

'Huge' bonus pool

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 Vacancy soft.

Newly qualified lawyers at the best-known firms are now reportedly earning as much as £147,000 before bonuses business listings.

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.

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

At the same time, many workers have revaluated their careers during the lockdown and changed jobs or left the workforce, in what some have labeled 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.

More on this story

·         Sainsbury's raises pay to £10 an hour

·         Starter salaries rise at the fastest rate in 24 years

·         Job vacancies surge past one million in a new record

It will increase its basic rate from £9.50 to £10 an hour for staff across its supermarkets and Argos stores from 6 March.

Sainsbury's boss Simon Roberts said the pay boost reflected the progress it was making against its savings plan.

It follows the likes of Morrisons, Lidl, and Aldi who announced similar moves last year.

Sainsbury's will also increase its minimum hourly rate from £9.75 to £10.50 for workers in outer London and from £10.10 to £11.05 in inner London free business listings.

By comparison, the UK's minimum wage for workers over 23 - the National Living Wage - is set to rise from its current level of £8.91 an hour to £9.50 from April.

·         Meanwhile, the real living wage, paid voluntarily by almost 9,000 employers throughout the country, has gone up from £9.50 to £9.90 an hour.

·         How much is the minimum wage?

·         Lidl to become UK's highest-paying supermarket

·         Where are all the job vacancies?

The higher rates paid by Sainsbury's will apply to about 150,000 employees across the company - including shop workers and lorry drivers.

The supermarket chain said it was investing £100m in total in improving pay and rewards for its frontline staff.

"We are making this significant investment to show our colleagues how much we value the brilliant job they do for our customers every day," Mr Roberts said.

It will also bump up pay for drivers amid an ongoing recruitment struggle which has been exacerbated by the coronavirus pandemic and Brexit.

Minimum wage increases from 1 April:

·         National Living Wage for over-23s: From £8.91 to £9.50 an hour

·         National Minimum Wage for those aged 21-22: From £8.36 to £9.18

·         National Minimum Wage for 18 to 20-year-olds: From £6.56 to £6.83

·         National Minimum Wage for under-18s: From £4.62 to £4.81

·         The Apprentice Rate: From £4.30 to £4.81

Groceries delivery drivers will now get £11.50 per hour, while Argos Fast Track Delivery drivers will receive £11 per hour based on a base rate of £10 per hour plus an extra £1, up from 75p.

"While demand for online deliveries remains high, this enhanced pay will help the retailer recruit and retain the best talent," Sainsbury's said.

Staff will also receive a 10% discount on their shopping from Sainsbury's, Argos, and Habitat, which will be increased to 15% each payday for five days after.

Despite the increase, the higher rate will still fall shy of the £10.10 per hour Aldi and Lidl have offered to pay staff from February and March respectively.

Lidl has set out new rates where more experienced workers will earn up to £11.40 an hour, while Aldi will pay £11.55 an hour to employees working within the M25.

The latest available data suggests that Tesco currently pays £9.55 an hour, while Waitrose and the Co-op pay £9.50 and Ads pays £9.18.

More on this story

·         Lidl to become UK's highest-paying supermarket

·         Where are all the job vacancies?