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Salary decline 'creates employee careers market'
Wednesday, 27 June 2007
Employers are finding it more difficult to retain staff as earnings growth starts to slow down, according to a new report, something which could create a good graduate careers market.
Research carried out by the Chartered Management Institute (CMI) found that the increase in earnings was 5.3 per cent this year, down from 5.7 per cent in 2006.
Some 81 per cent of employers admitted they were struggling to recruit the right people, with just over 68 per cent blaming stiff competition from other firms.
However, 51 per cent of recruiters confessed that they did not offer either staff or graduate training schemes or much in the way of careers development.
"The steep climb in organisations reporting recruitment difficulties, mixed with an increasing number of resignations should be ringing alarm bells for employers," said Jo Causon from the CMI.
"The marketplace is clearly tipping in favour of the employee, so if they are serious about retaining the best talent organisations urgently need to meet the needs and expectations of their staff."
In a bid to secure the right candidates, the report also found that 32.6 per cent of employers have offered 'golden hello' payments to staff.