Survey shows skills shortages are fuelling Scottish salary rises

Majority of companies are planning to recruit next year

Scottish businesses are maintaining their optimistic outlook despite the uncertainty surrounding Brexit, according to a new report.

More than half of companies in Scotland (59%) are expecting their business activity to increase over the coming year, according to the survey by recruitment specialist Hays.

It shows that almost two-thirds (63%) of businesses are planning to recruit in the next 12 months.

However, the survey also reveals that 69% of employers state that skills shortages are negatively impacting on productivity and that they don’t have the talent needed to achieve business objectives over the coming year.

This is also impacting on productivity, employee morale and plans for growth.

Salaries across Scotland have increased by an average of 2.2% – ahead of the UK rise of 1.8% – with increases fuelled by skills shortages.

More than 17,500 employers and employees were interviewed for the survey.

Akash Marwaha, managing director of Hays Scotland, said: “Skills shortages are leading to increased pressure on existing employees, low morale, and hindered productivity and growth.

“The survey also found that 54% of employees expect to move jobs in the next 12 months, so workforce planning should be an important priority for employers.”

Construction and property professionals have enjoyed the highest average salary increases, with an average of 2.7%, followed by IT (2.3%) and engineering (2.2%).

Skills shortages are leading to increased pressure on existing employees, low morale and hindering productivity

AKASH MARWAHA HAYS SCOTLAND