UK employers increasingly resort to bidding wars to retain staff, says survey

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UK employers are increasingly resorting to bidding wars to retain staff, according to a survey that appears to contradict recent data suggesting the labour market is beginning to cool and wage inflation is easing.

Article originally published by The Financial Times. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

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14 Aug 2023

In the past year, 40 per cent of employers have made a counter-offer to try to keep an employee who has received a job offer elsewhere, according to a quarterly survey published on Monday by the Chartered Institute of Personnel and Development.

Within this group, more than half had used counter-offers more frequently than in the past year, and a quarter expected to use the tactic more often in the year ahead.

The survey, conducted in June and early July, suggests that UK employers are struggling to fill posts, despite the weak economic backdrop, and that wages are still growing rapidly as a result.

The findings come ahead of official labour market data due out on Tuesday that will be closely watched by rate-setters for any clues on the future direction of wage growth.

After raising interest rates to 5.25 per cent earlier this