Skilled City staff ‘set for £6000 pay rise’ as talent drought hits
A talent crunch will dramatically drive up salaries for highly skilled City workers, adding an extra $120 billion (£91 billion) to the UK wage bill by 2030, headhunter Korn Ferry warned on Wednesday.
Companies will be forced to pay top-tier workers an extra £6000 a year on average due a drought of qualified staff, which could put profits under pressure, the New York-listed company warned. “The new era of work is one of scarcity in abundance: there are plenty of people, but not enough with the skills their organisations will need to survive,” said Mark Quinn from the organisational consultancy firm.
Under-educated workers and low levels of immigration are increasing the divide between the top and bottom of the labour market.
A separate poll today by the Recruitment and Employment Confederation revealed one in two UK employers think they will find it to hard to recruit the permanent staff required.
If the skills gap continues, Korn Ferry predicts the UK’s wage premium, the amount companies have to pay on top of their existing salary bills, will rise to $29 billion by 2025.
It also says it will hit $121 billion by 2030, which is equivalent to 5% of UK GDP this year.
