30.07.2024

Data suggests firms at risk of losing their future superstars

Firms are at risk of losing some of their future superstars as younger demographics demonstrate higher levels of pay increase expectations and a greater incentive to take action if not rewarded appropriately. That’s according to the latest Robert Half Jobs Confidence Index (JCI) – an economic confidence tracker produced in partnership with the Centre for Economics and Business Research (Cebr).

The data revealed that 73% of those aged 18-34 expect to receive a pay rise within the next year, above the national average of 65% and the highest of all age brackets. Those in the younger demographic also revealed a greater desire to take action if they did not receive the salary increase they expect.

The majority (81%) of 18–34-year-olds would take steps ranging from moving employers to looking for additional sources of income if their remuneration didn’t change as they expect. This is significantly above the national average of 68% and higher than all other age groups.

According to the JCI, this is likely being driven by the high levels of job confidence noted in younger demographics. Almost two-thirds (61%) of those in this group indicated that they are confident in their job prospects in the coming year.

Gareth Gage, Regional Managing Director at Robert Half, commented: “We’re definitely seeing an increased level of job confidence in the market and younger workers appear to be the most optimistic. With widespread reports of skills shortages and labour hoarding being noted across many businesses, it’s perhaps no surprise that these individuals are confident in their ability to secure the work and pay they want.

“However, salary increases aren’t necessarily feasible on the scale that some are asking, which means employers could be at risk of losing some of their future superstars at a pivotal time in the economic landscape. Ensuring that attractive and holistic employment packages are being offered will be crucial to attract and retain core talent in the immediate future. We’re seeing an increased desire from the workforce for benefits packages which include elements such as healthcare insurance and flexible working opportunities. These can often be a more cost-effective method of talent attraction in tough times. Those firms that really perfect their offering will be in the best place to retain high-performing professionals as we move into a more positive climate.”

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