New York, NY (PRWEB) June 24, 2014
Hiring rates, job fill rates, and salaries are on the rise according to the annual Salary & Job Market Report conducted by 24 Seven, the fastest-growing international search firm specializing in Fashion, Retail, Marketing, Digital, Design & Beauty. While job market indicators are positive, raises were smaller than last year, and the survey finds talent dissatisfied with salaries and jobs, disengaged, and looking to move. This doesn’t bode well for their managers, as the majority of executives surveyed report being under the same or increased pressure to retain talent.
Job Market Indicators Positive, But Total Compensation Increases Lower Than 2013
Seventy-two percent (72%) of professionals surveyed by 24 Seven reported an increase in total compensation, averaging 4 percent, down from 5.5 percent in 2013. Employer caution with salary budgets is working against companies as 45 percent responders report being unhappy with their salary and 70 percent are planning a career move in the next year (citing salary as the top reason to change).
Those looking to move face a brightening job market with 81 percent of executives reporting hiring rates the same or higher than last year. Seventy-six percent (76%) of employees surveyed said that they had been approached with a new job opportunity in the past year – 43 percent of those said this happened more frequently than the year before. About 2/3 of employees are feeling like they are in demand in the marketplace. Executives say that those in Sales, Design & Creative, Marketing, Product Development & Management, and Digital are the hardest to recruit.
“We are seeing the greatest growth in demand for talent among digitally- and creatively-focused skill sets,” explained Celeste Gudas, Founder & CEO of 24 Seven. “Across all the industries we support, talent who embrace digital disruption; who understand how it’s changing their industry and work; who continually accumulate the skills needed to thrive in the ever-evolving, technology-driven workplace; and who understand how digital is changing the consumer/brand journey are the most sought after today.”
Quest for Better Compensation, Career Potential & Quality of Life Drives Talent Flight
The majority of talent surveyed (70%) said they planned to make a career move within the year. Along with dissatisfaction with salary, only 55 percent said they were satisfied in their job, and even less (47%) said they were truly engaged in their work. Top reasons to seek out new opportunities included higher salary, better chance at advancement, better growth potential, and improved quality of life. In fact, after medical insurance, some form of “time perk” was the next most highly valued benefit, whether received in the form of flex time, telecommuting, comp days or summer hours. Sixty percent (60%) of talent reported working for companies that offered some combination of these, and executives listed flexible schedules as one of three top talent lures (along with better growth opportunity and clearly defined career paths).
Executives Under Talent Management Pressure But Don’t Get Necessary Support From Company
The majority of executives (85%) reported feeling under the same or mounting pressure to attract/retain talent, and believe that having the right talent is critical to company success. Yet it seems that the companies they work for lack a strategic talent management focus. Only 22 percent of executives said that their company actively assesses talent inventory against the rapidly changing business environment and only 1/3 (36%) reported working for a company with a formalized strategy for identifying high potential employees. When it came to supporting executive efforts to identify, recruit and secure talent, only 30 percent of executives said their company invests enough in talent acquisition. From the executive perspective, the top talent issue faced by companies today is filling jobs requiring specialized skill sets (and a skills gap in the marketplace is primarily blamed for making talent hard to recruit).
Employee Engagement & Employer Branding Key to Attraction & Retention of Talent
In addition to job satisfaction, 24 Seven’s study sought to measure employee engagement (a new metric in the 2014 Report). While an employee may be happy with their job and the conditions of employment from 9 to 5 (i.e. job satisfaction ), that fact doesn’t necessarily mean that they are actively engaged in their work and are willing or inspired to go above and beyond the job expectations (i.e. engagement). On both measures this year, employees are lukewarm, with 55 percent satisfied in their jobs and 47 percent truly engaged at work.
24 Seven’s study found that increasing employee engagement has a direct positive impact on employee loyalty, job satisfaction, career outlook perception, likelihood to promote/refer company, and team/manager connection – all impactors on an employee’s likelihood to seek other employment.
In addition, clearly defining the company’s employer brand (the features/benefits and reputation of a company as an employer) has a positive impact on a company’s ability to attract/retain talent, employee satisfaction, employee loyalty, employee engagement, employees’ sense of value, employee trust in company/manager, and employee career outlook at company.
Notes on Survey Methodology and Analysis
24 Seven Inc. surveyed over 4000 professionals around the world. The survey examined the current state and prevailing attitudes of the employment market among talent and those that hire them. Of those surveyed, 69 percent were female, 67 percent were non-managerial talent, and 67 percent were Generation Xers. Furthermore, 34 percent of respondents worked for companies with over $500 million in sales, 21 percent were in Fashion/Apparel/Footwear/Accessories, 19 percent Beauty, 16 percent Marketing/Advertising/Creative and 13 percent Retail, among other industry/sectors. For a copy of the 24 Seven 2014 Salary & Job Market Study in one of 3 editions (Fashion/Retail, Marketing/Digital/Creative, Beauty), go to http://www.24seventalent.com/salary-trends.
ABOUT 24 SEVEN
As a strategic resource for talent management, 24 Seven helps creatively-driven global brands identify, recruit and secure game-changing talent. Our innovation approach combines global reach, industry expertise and market intelligence to deliver top performers that advance the unique business goals of our clients.
Ranked by Crain’s New York Business as one of the Largest Executive Recruiters in New York, we are the go-to talent resource supporting the world’s top teams in Fashion, Retail, Marketing, Digital, Design & Beauty. Our strategic recruiting professionals have either personally worked in our recruited exclusively for the industry practice they serve. Their hands-on experience makes them experts in perfectly matching candidates to clients. For more information visit http://www.24seventalent.com or contact Natasha Lopoukhine, Director of Strategic Content & Communications, natashal(at)24seveninc(dot)com.