The majority, or 58%, of employers in the UK believe that they will lose staff in the next six months as they seek to earn more by moving jobs, according to new research by Morgan McKinley.

The research showed that 56% of employees in the UK are looking to move jobs in the first half of the year, with 49% selecting ‘higher salary’ as the primary reason, followed by ‘better career growth and development opportunities’ (17%).

Most, or 72%, of employers had to offer higher than anticipated salaries to attract new employees over the last year. Furthermore, 74% of employers in the UK think that salaries in their specific sector will rise in 2023, with over half (56%) planning on increasing base salaries across all teams.

Meanwhile, more than half, or 55%, of employees in the UK are expecting their salaries to increase this year, with 59% also expecting some form of bonus payout.

Morgan McKinley’s research also found that 56% of businesses plan to hire new permanent or contract employees in the next six months.

David Leithead, Chief Operating Officer of Morgan McKinley UK, said, “Generally speaking, there was strong wage inflation associated with moving jobs in 2022. Many companies tore up the rule book, ignored salary guides, and simply pulled out all the stops to secure talent. The sense of competitive bidding was exacerbated by the determination of the hirer being matched by the current employer not wanting to lose their employee. We don’t expect to see such widespread increases this year, but they are likely to recur in areas where the shortage of skills is acute.”