London firms lure home-working Scots with City salaries
Remote workers are securing attractive pay offers
Employers in London are spreading their search for labour by offering City-based salaries to those working from home in Scotland.
The change in working patterns, resulting from the pandemic, has coincided with a labour shortage that is also pushing up pay rates, according to new research.
Louise Powrie, director of financial & professional services at recruitment firm Core-Asset Consulting, said: “The majority of employers understand they will be adopting hybrid or remote working for the remainder of the year.
“While this is dependent on the business’ needs, the general consensus is these working models are here to stay for the foreseeable.
“This is now having a profound impact on the job market, with businesses in London now looking to attract Scottish talent with the lure of remote working and a London salary.”
A survey by the firm found around half of candidates registering in the last quarter have been women, in contrast to the previous quarter which saw women fall back from applying, with just 35% of total applicants comprising females.
It is believed easing restrictions and the introduction of hybrid working has been responsible for the resurgence of female applications, especially those with young families.
Ms Powrie said: “More employers are recognising the need for flexibility, particularly for candidates with young children, and are embracing hybrid working patterns.”
More firms plan pay rises
More than two-thirds (68%) of companies are likely to raise pay in the scramble to hire staff, according to a CBI survey.
Despite fears that the imminent end to the furlough scheme would see a sharp rise in unemployment there is growing concern over labour shortages across industry as the jobs outlook strengthens.
About three-quarters (76%) of businesses are reporting access to labour as a threat to the UK’s labour market competitiveness – the highest proportion since the question was first asked in 2016. Nearly nine in ten (87%) are planning to recruit permanent roles this year.
Matthew Percival, CBI Director of Skills and Inclusion, said: “Pay intentions are rising across the board as firms reopen and the economy recovers. This could be challenging though, for those businesses that remained shut during lockdowns and need to recoup losses and pay off Covid debts.
“Pay rises need to be underpinned by productivity or risk being passed on to customers through higher prices. The Government using the upcoming Budget to boost business investment will be key to achieving this and preventing rising employment costs damaging labour market competitiveness.”
Tech surge in capital
Research by Tech Nation has found that Edinburgh is one of the five cities outside London which has seen the biggest growth in tech jobs this year.
The latest figures from industry body Tech Nation also show one in eight jobs in the UK is now in the sector, with tech or digital roles currently making up 13% of all UK vacancies.
The number of tech vacancies is now 42% higher than it was pre-pandemic.