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How the cost of living crisis is impacting recruitment

  • Publish Date: Posted over 1 year ago

There is no escaping the reporting on the cost of living crisis, especially now that UK inflation has risen to 9.1%, which is a 40 year high. According to Kantar, food costs rose by 8.3% between May and June, and the average yearly shopping spend is expected to rise by £380. This is another £100 rise since April 2022. It’s not just the cost of food that’s rising, as energy prices are also continuing to increase. The British Medical Journal claims that this could have a serious impact on the mental health of many and, according to a YouGov survey, 55% of Brits feel that their health has already been negatively impacted by the cost of living crisis.

These rising costs are also impacting employees, and work related costs have increased significantly for most people. This could be due to rising energy costs for those that work from home, or increased commuting and childcare costs. Unsurprisingly, this is having a knock on effect on recruitment.

Rising living costs and recruitment struggles

Looking at information collected by Recruitive, we can see that 48% of workers did not have a pay rise this year. Out of those that did, 42% only had a pay rise of less than 5%. 17% of workers have had to get second jobs, and it’s expected that 700,000 car workers could leave the profession in the coming year in search of better paid work. This shows just how much the cost of living crisis is impacting recruitment.

According to CV-Library, 75.15% of UK professionals are thinking about getting a new job to help with inflation and rising costs. Plus, when looking at live vacancies, they found that salaries are not keeping up with inflation. In fact, many industries are offering wages that are lower than previous years. This has led to a lot of workers seeking out better paid positions.

Salary - 37% of workers are considering changing jobs to cover higher costs, according to TotalJobs. Recently, Recruitive found that one in three job seeker salaries is not enough to cover living costs. For 25% of job seekers, salary is the most important thing to think about when they are looking for a new job.

Hybrid Working - TotalJobs discovered that nearly a quarter of candidates felt hybrid working was crucial, especially as it allows them to save on commuting costs, despite the rising energy costs associated with working from home. 31% of applicants would not apply for a job without a hybrid working option.

As the cost of living crisis is not going anywhere soon, employers need to think about what they can do to attract top talent. Though offering salary rises and better benefits is difficult in the current climate, these are the two things that many job seekers are looking for. This is why flexibility, support and understanding from employers is key.