Is salary compression pushing you into a new job?

by James · August 6, 2022

You know the result: you’ve been at your company for a few years, done a good job, contributed to the bottom line, and generally made it a better place to be.

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Aside from annual cost of living rates of 2% or 3%, you may not have seen much in the way of a pay raise. Now, with costs continuing to rise – the Office for National Statistics says 91% of UK adults reported an increase in the cost of living between June and July 2022 – getting a pay cut would be quite a welcome thing.

It can be frustrating when new hires come in for the same money or get paid even more. It’s called pay compression and it happens when there is little variation in pay between team members, despite differences in areas such as skills, experience, performance or seniority.

While pay isn’t everything – the Jabra Hybrid Ways of Working: 2021 Global Report, which surveyed 5,000 workers in the UK, France, Germany, Japan and the US, found that 59% of respondents said flexibility is more important than pay and other benefits – it is still very high on the list of most people’s agendas, especially with the news that inflation will remain above 9% into early 2023.

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Talent squeeze

One of the most common causes of wage compression at the moment is the much-discussed “talent squeeze”, where companies compete to win talent and fill roles. Hiring managers find a need to increase candidate salary offers to secure them, but they are unable to adjust current employee salaries at the same time.

In the UK, around 3.2% of workers moved from one job to another in the first quarter of 2022, up almost a full percentage point from a year earlier. This points to an environment where the solution is to look for a new job in order to achieve better earning potential. In truth, job hunters know that being a new recruit is the most powerful position to be in to negotiate a higher salary.

So if you are demotivated by wage compression in your workplace and feel undervalued, it may be time for a change.

You will not be alone. A Microsoft survey of more than 30,000 global workers earlier this year found that 40% were likely to consider changing jobs in 2022. Below we have three exciting roles to check out – and as always, there are hundreds more to discover on our Job Board .

Computer scientist, iwoca

As a Data Scientist at iwoca, you will develop cutting-edge algorithms using statistical modeling and machine learning techniques and will use Python to produce data-driven solutions. You will be expected to derive meaningful and actionable insights from data as well as develop the innovative technologies behind the platform.

Iwoca is looking for a Data Scientist who loves to code and get their hands dirty with raw data. You will have a strong numerical background, with education in engineering, mathematics, physics or equivalent, and you must have a background in probability and statistics as well as programming experience in Python, Java, C/C++ or similar.

Discover more about the Data Scientist role or browse other jobs at iwoca.

DevOps Tech Lead, Yapily

Yapily is seeking a DevOps Tech Lead to join the DevOps team, responsible for building and maintaining the Yapily infrastructure that serves nearly one million API calls per day, as well as all engineering teams within the company.

You will deploy microservices on Kubernetes clusters across multiple clouds, using Roar charts and ArgoCD for deployments. You will have demonstrable leadership in a dynamic environment with changing priorities and you will have designed, built and maintained a container-based distributed platform. Working experience with configuration management tools is required and you will have built and optimized CI/CD pipelines for applications and to eliminate wear and tear.

Find out more about the DevOps Tech Lead role or see what other jobs Yapily has to offer.

Data reporting specialist, Soldo

Soldo makes it easy to manage business expenses. As a Data Reporting Specialist, you will work with the Performance Marketing team to create visual data representations that address meaningful business questions and unlock key insights around acquisition campaigns, while implementing the strategy to keep key data sources well connected.

The ability to tell compelling stories with data, to communicate trends to technical and non-technical stakeholders, is critical. You will be proficient with data representation tools such as Datastudio, Tableau and Power BI and web analytics tools including Google Analytics 4 and Tag Manager.

See the full job description or browse through other vacancies at Soldo.

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