Business confidence and skills shortage to fuel marketing pay pressure in 2016

Business confidence and skills shortage to fuel marketing pay pressure in 2016

 

• Marketing salaries grew 2.6% in 2015 with online and digital roles enjoying largest increases
• Yet 61% of marketers plan to switch jobs in 2016, a third because of pay
• 69% of marketing employers confident that business activity will increase in 2016 
• War for talent intensifies as 69% plan to increase headcount but 71% say skills shortage will be a challenge

 

According to the Hays UK Salary & Recruiting Trends 2016 report, marketing professionals saw widespread salary increases in 2015 – yet despite this, huge numbers of marketing employees are set to switch jobs next year and employers are set to come under increasing pressure to raise pay to retain and attract top talent.

 

The analysis of salary data from Hays job listings, job offers and candidate registrations saw the average marketing salary increase by 2.6% in 2015, higher than the national average of 2.3%, with the average marketing salary now £41,283. The survey of over 780 employers and employees in marketing found that 15% of marketing employers awarded pay increases of above 2.5%.

 

Those marketers specialising in online and digital fields enjoyed the largest increases as their average pay rose by 3% and some specific digital positions even enjoyed double digit salary growth.

 

Employers face pressure to increase pay even further

Confidence in the sector is high, with almost three quarters (69%) of marketing employers expecting business activity to increase next year and the same number (69%) expecting to hire new staff.

 

However, despite widespread salary increases, three in five (61%) marketers expect to move jobs in 2016 and more than a third (37%) expect to leave within six months. One in three (32%) cite pay as the main reason for leaving and a similar number (29%) intend to leave their current position due to a lack of future opportunities.

 

With over three fifths (64%) of employers expecting to increase pay next year, the report suggests that the industry is facing pressure to increase pay further to attract and retain the best talent. Those who cannot raise salaries may need to focus on offering clearer paths of progression as well as investing in up-skilling their employees in order to attract and retain the staff required to meet the demands of a busier 2016.

 

Skills shortage remains concern for majority of employers

A fluid jobs market and dissatisfaction with pay, combined with marketing’s chronic skills shortage, is likely to increase the pressure on employers. Almost a third (31%) of marketing employers say they do not currently have the talent required to achieve business objectives and almost three quarters (71%) say they are already concerned they will encounter a shortage of suitable applicants. This is in sharp contrast to the 97% of marketing employees who believe they have the skills required to fulfill their current role.

 

Employers may need to reassess their salary plans for the year ahead and react quickly to ensure they can both get the best talent onboard and prevent a staff exodus ahead of a busy 2016.

 

Clare Kemsley, Managing Director of Hays Marketing, says:

 

“Confidence is high amongst many in the marketing sector and this is fueling a growth in salaries, but this optimism is set to have consequences for staff retention. A huge number of marketing professionals expect to leave their jobs next year as dissatisfaction around pay and career prospects continue. The opportunities for candidates will only increase as the jobs market becomes more fluid, along with their bargaining power around salaries and benefits, and marketing organisations will come under increased pressure to raise pay. Those employers who cannot provide impressive remuneration packages will struggle to attract the top marketing talent and may need to appeal to candidates by offering clearer opportunities for career progression as well as investing in up-skilling their teams instead.”

 

“Considering the expanding role of digital in the sector, it’s unsurprising that those with solid skill sets in these areas are enjoying the highest growth in salaries. We’re noticing employers placing more value on staff who understand the potential and limitations of coding as well as those who can efficiently interpret, analyse and provide meaningful insight from the swathes of data marketing teams currently handle. However, finding these digitally literate candidates is proving a challenge for many marketing organisations and as demand grows these individuals will command premium salaries. This presents a tremendous opportunity for marketing professionals, who would be wise to proactively develop their digital skills now to stand out from their peers and appeal to potential new employers in the future.”