Golden hellos double as employers struggle to recruit

The number of employers offering ‘golden hello’ bonuses has doubled since 2006.

The increase from 16.3% of employers offering ‘golden hellos’ in 2006 to the 32.6% of employers offering them now reflects the finding that 81% of employers are reporting recruitment problems, a fourfold increase since 2002.

The 34th National management salary survey by the Chartered Management Institute and Remunerations Economics showed that the 2007 average increase in earnings was 5.3%, which is down from 5.7% in 2006.

In real terms, the findings show that the average total earnings for managers stand at £47,449 across the UK. The top-earning managers are London-based (£54,808).

Bonus payments are also playing less of a role in overall ‘take home pay’. In 2007, 59.2% of executives were awarded bonuses, which is a drop for the second consecutive year. The findings reveal an average bonus payment across the UK of £5,543 for managers, but shows vast regional differences.

The majority of employers (73.2%) blame a lack of qualified candidates for problems with recruiting staff, while competition from other organisations also ranked highly (68.4%). Butut employers admitted they had failed to learn lessons from recent years, with 51% saying they offered little in the way of training or career development.

The survey found that, in terms of wider benefits, the proportion of organisations providing a ‘complete remuneration package’ continues to climb.

Paul Campfield, director at Remuneration Economics, said: “This year’s survey shows how benefits packages are increasingly being offered to employees amongst all levels of seniority. When reporting first began, in 1974, provision of medical insurance was largely the domain of directors. Today, over 70% offer the same benefit to staff across the organisation.”