Employers need to consider the full range of benefits to compete in this jobs market

Salaries are soaring and staff are increasingly looking at the wider package when making decisions on who to work for,

Every year Bespoke Careers produces a global salary and benefits guide. This year saw the biggest increase in UK salaries in the guide’s history. The data clearly demonstrates that salaries have increased in almost all roles across all levels.

This is consistent with recent intel from the Office for National Statistics (ONS), who reported that wages in the UK surged at the fastest pace on record during the last three months of 2022. The sharpest rise within our sector was for mid-level architects and designers, with employers paying a premium for skills like Revit and BIM. We also saw major increases within support roles, potentially a correction due to the fact that reviewing remuneration for these positions has tended to be overlooked since before the pandemic.

Some employers have increased remuneration to try to minimise the impact of the cost-of-living crisis, but the primary reason for the upward trend has been the shortage of talent, which has increased the pressure to attract and retain staff.

"While soaring staff costs are not the only reason for this, it's reasonable to assume that they are certainly a contributing factor"

While this boost in salaries is a positive for employees, it does put additional pressure on businesses who are also being hit by skyrocketing material and energy prices. We’ve all seen large architectural firms recently reporting significant drops in profits.

While soaring staff costs are not the only reason for this is, it’s reasonable to assume that they are certainly a contributing factor. Unlike larger firms who are more likely to be able to push the boat out financially to attract and retain staff, we have seen some smaller firms struggle to compete.

To mitigate this, some small to mid-sized studios made great strides overhauling their benefits; looking at the complete job offer and package, rather than salary in isolation.

"Enhancing holiday allowance is a very effective tool for negotiation"

Private healthcare, which in the past was often reserved for senior staff, has become a more common expectation from job seekers. The big providers offer more than just traditional health cover, including a wealth of additional benefits such as reduced gym membership, retail discounts and travel perks. This can add tangible value and encourages employees to live a healthy lifestyle as well as supporting them with their mental health and wellbeing.

We all know people value wellness and work/life balance more than ever. Hybrid and flexible working have become an expectation, rather than being seen as a benefit. In-house wellness activities are a popular trend; yoga, at-desk massages, team sports and cultural activities all increase employee engagement. However, for these to be seen as true benefits, rather than just a perk, there must be a formalised programme in place.

Enhancing holiday allowance is a very effective tool for negotiation that doesn’t have an immediate monetary cost to the business. In an industry that closes over Christmas and New Year, giving additional days for the closure is always a plus point, and increasing holiday allowance with length of service rewards loyalty. Both these leave enhancements are looked on favourably by candidates when considering job offers.

"Whatever a firm is able to offer, it's more important than ever that employers promote what they do"

Salary sacrifice is another creative way for a business to offer non-cash benefits. This works for both the employer and employee as it results in less tax being paid by both parties. The most common items this is used for are childcare costs, pensions, cycle to work schemes and gym memberships but there are many other ways to utilise this arrangement. Salary sacrifice does require proper administration and the employer and employee must enter a legally binding variation of the employment contract.

Whatever a firm is able to offer, it’s more important than ever that employers promote what they do in job adverts, at interview and critically in the paperwork that is issued at offer stage. Going as far as quantifying each benefit with a monetary value and sharing this with potential hires is relatively easy to do. This can make a huge difference to your chances of success during the recruitment process.

If you would like some advice on innovative ways you could improve your attraction and retention rates or would like a copy of the Bespoke Careers 2023 Salary Guide, please feel free to reach out to me.

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