The current situation in the labour market means that employees are making ever greater demands of employers. In 2022, the number of job vacancies peaked; 1.6 million, to be precise, the highest number since 1997. Although this number is expected to decrease slightly in 2024, it remains a candidate-driven market. There are structurally more vacancies than people who are (immediately) available. Candidates are spoilt for choice in this market.[private limit=”” roles=”werf_subscriber_unpaid”]
‘You do not solve staff shortages by continually offering a higher salary as an employer.’
This also means that wages are rising everywhere. But labour market shortages will not be solved by continually offering a higher salary as an employer. The problem will continue for the time being precisely because supply and demand are not well aligned in terms of content. The shortage is structural, whilst a pay rise only motivates temporarily at most. So how do you gain control over the unexpected salary negotiation that is often used as a tool to retain and motivate employees? Three insights:
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