JCI data shows firms risk losing future talent

Firms who are unwilling to meet the pay demands of younger demographics risk losing some of their future superstars, 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).

Data reveals 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, if not awarded appropriately, 81% say they 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.

“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,” comments Gareth Gage, Regional Managing Director, Robert Half.

“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.”

The JCI also shows an increase in the desire from the workforce for benefits packages, such as healthcare insurance and flexible working opportunities which can often be a more cost-effective method of talent attraction in tough times.  Firms which perfect their offering in these areas will be a better position than most when it comes to retaining high-performing professionals.