June's figures are showing a cooling off in expectations of job seekers salary demands. Firms have held firm on their salary offerings for most of this year and then paid a premium for the top talent, sometimes as much as 15% over advertised salaries.
This strategy has worked in well for them in the short term but now that a few notable firms have broken ranks and are using increased salaries as a tool to secure the best of best, it's only a matter of time before we start see the rest of the market follow suit. See June 2017 Pay Ratio report for more information.
At the moment we are seeing a quite stable we are predicting considerable upward pressure before the end of the year.
Permanent salaries have been showing a steadily increase for the last 12 months but this is cooling off now. The salaries on offer from clients are quite steady and considerably less than the salaries being demanded by potential candidates.
Bonus have been lower this year in areas not related directly to sales.
We are not expecting to see upward pressure on bonus for at least the next 12 months.
The chart to the left shows the combined effect of average base salary and average bonus reported and then combined into a total compensation package. No allowance for additional compensation is made such as cars, pensions and other such benefits.
Interim Day Rate
Demand is driving the day rates up for senior staff.
The ‘Associate Consultant’ model operated by a large number of the boutique firms is thriving and their reduced operating costs has allowed them to compete for the best contract talent with improved day rates. This trend is only going to continue in our opinon.
Where did our data come from?
The data for this month's survey results was gathered from 2275 people and 91 firms.
Our normal smoothing was applied which includes removing the top and bottom 5% of data converting as input data to UK £ Sterling.