As dedicated recruitment consultants in the Operations space, we recruit for roles within;
Production, Warehouse, Factory Management
Supply Chain, Logistics
Health and Hygiene
We recently took a closer look into our 2023 Salary & Benefits Survey, focusing solely on entrants from the above roles.
Looking at pay rises for respondents within these job functions, we’re happy to see that 68% have had a pay rise in the last 12 months. The majority of these people's pay rises sat between 1-10% and were most likely due to company-wide annual inflation increases. This is an interesting stat, especially when it comes to the current challenges businesses are facing. In a year, where utility costs, interest inflation and overall cost of raw materials have gone through the roof, the added challenge of maintaining and staying in touch with employee requirements and engagement has never been harder.
One company we speak to regularly saw a £2 million uplift in labour costs through these pay rises. The challenge persists, with where these companies are going to find the additional revenue to cover it and stay afloat, and ultimately therefore provide a place of work for those individuals seeing the pay rises.
Is this why we have seen a few businesses closing sites?
Unsurprisingly, of those who work in this space only 28% have the option of remote working.
Operationally it can be hard to offer hybrid working, especially for the shopfloor, however, the nature of the support teams from a Planning and Supply Chain point of view, are still very split in their opinion of working styles. Individuals quite rightly believe they can, after 2+ years of doing it successfully, maintain a hybrid or remote working pattern. However, some businesses are changing their tactics and looking to bring people back into the office, and ultimately the cultural/teamwork benefits outweigh the others.
I feel this will be an ongoing battle but who will win...I am not sure.
37% of respondents left their last role for career progression and a salary increase.
In the challenging world of inflation, as we mentioned before, it is not only the businesses struggling but also the employees. In a world with a competitive labour market and labour shortages, we find ourselves in a candidate-driven market, and with the added challenge of businesses not being able to offer the progression of the salary that other businesses may be able to, candidates will certainly look elsewhere for this next step.
Offering development, loyalty, and a clear view of the future, is still a major attraction for talent and can still trump a salary increase if done correctly. Individuals, however, need to weigh everything up and ultimately the risk of a move in the current climate can create nervousness. So, if there is any advice for businesses it is to look after your talent. If you are nurturing talent internally, communication, pathway and development are massive (both career and salary). If you look externally, be willing to pay what it takes, and if you want to keep that talent, you will also need to provide the pathway, so make sure you know what that looks like for the individual.