Employees in the North East are displaying above-average job confidence and are demanding corresponding pay increases, according to the latest Robert Half Jobs Confidence Index (JCI).
The JCI, an economic confidence tracker produced in partnership with the Centre for Economics and Business Research (Cebr), reveals that workers in this region are more optimistic about their job prospects compared to the national average.
Data from the JCI indicates that 68% of employees in the North East are confident about their job prospects for the current year, surpassing the national average of 60%. This figure is also higher than London’s 63%. When considering career confidence over the next five years, the percentage in the North East drops slightly to 56%, but it still remains above the national average of 46% and London’s 54%.
Elevated Pay Expectations
This heightened job confidence is translating into higher pay expectations across the region. Nationally, 65% of workers expect a pay rise this year, but in the North East, 71% of employees are confident they will see an increase in their remuneration. Additionally, workers in this region expect an average pay rise of 4.5%, compared to the 3.8% national average.
The survey also highlights that almost two-thirds (65%) of employees in the North East are prepared to take action if they do not receive the expected pay rise. This includes negotiating for additional benefits, taking on freelance or part-time work, or considering changing jobs.
Conor McCabe, Market Director for Northern England at Robert Half, commented on the findings:
“With such high levels of job confidence reported in the North East, it’s no wonder that employee pay expectations are inflated. However, for most businesses that have already faced a tough first half of the year, salary increases on the levels staff desire aren’t necessarily going to be feasible. What is interesting to note, though, is that workers in the region are interested in negotiating additional benefits packages with their employers, which could prove more cost-effective overall.”
Implications for Employers
The data suggests that employers in the North East may need to explore alternative strategies to meet employee expectations, especially given the financial constraints many businesses are facing. The interest in negotiating additional benefits packages could present a viable solution that balances employee satisfaction with financial feasibility for employers.
As job confidence and pay expectations remain high, businesses in the North East must navigate these dynamics carefully. Employers who can successfully negotiate benefits and provide career development opportunities may be better positioned to retain talent in a competitive market.
Overall, the findings from the Robert Half Jobs Confidence Index highlight the robust job confidence among North East employees and the corresponding high pay expectations, presenting both challenges and opportunities for businesses in the region.
