Salary Survey - draft

 

The UK Economy

GDP growth is set to slow as consumers continue to face the squeeze on their disposable incomes and the conflict in Ukraine will likely drive UK inflation higher.

According to the ONS’s first quarterly estimate;

• UK GDP increased by 1.0% (close to the level of activity prior to the onset of the pandemic in 2019 Q4).
• Household consumption and business investment had risen by around 1%. 
• Government expenditure grew strongly.
• Business investment remained more than 10% below its pre-Covid level.
• GDP rose by 0.8% in January - 0.5% higher than in 2019 Q4 (stronger than had been expected).  
• Government services output was stronger than expected due to health activity including NHS Test and Trace. 
• GfK consumer confidence declined in February (forward-looking increasing pressures on households’ real disposable incomes)
• Housing market activity remains robust

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"...we expect two more rate increases this year, although further increases are possible if inflation expectations increase significantly, followed by a modest tightening next year."

(KPMG)

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UK Employment Rates (Feb 2022)

As the economy has reopened, we now have record-high vacancy rates.

Employment Rate 75.5% 

(+0.1 vs P3M  |  -1% than pre Covid Dec 19 - Feb 20)

Unemployment Rate 4.1%  

(-0.2% vs P3M  |  +0.1% than pre Covid Dec 19 - Feb 20)

(The Office for National Statistics)

Unemployment Forecast 3.9%

2023 forecast 4.3% 

(KPMG)

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Roadmap to recovery

blah blah

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Ecommerce and Digital Marketplace 2021

UPDATE numbers

There will be no slowing down in the ecommerce & digital marketing space. Indeed, new research carried out by hosting.co.uk has recently reported that the UK has been rated as the top European country for ecommerce startups.

• Revenue in the eCommerce market is projected to reach £m in 2022.
• Revenue is expected to show an annual growth rate (CAGR 2021-2025) of %, resulting in a projected market volume of £m by 2025.
• The market's largest segment is Fashion with a projected market volume of £m in 2022.
• User penetration will be% in 2021 and is expected to hit % by 2025.
• The average revenue per user (ARPU) is expected to amount to £"

(Source: Statista)

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Ecommerce grew by x% in 2021 - ......

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Ecommerce & Digital Salaries

Average National Salaries & Vacancies

The average national salary has decreased by just over 1.5% vs last year to just over £35k (similar to a junior Digital Marketing role).  From May '21 to October '21 average national salaries continued to drop before rising again pre-Christmas and leveling out at the start of 2022.

* When looking at salaries, the impact of the end of furlough must be taken into account.

Source: Adzuna (data correct as ofo 26 April 2022 1049)

2021 was a year when digital & ecommerce jobs rocketed and businesses were hiring by getting 'bums on seats'.  This year, digital roles will continue to grow as organisations optimise their digital teams.  

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“interpreting average earnings data is difficult at the moment”

(The Office for National Statistics)

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Digital & Ecommerce Salary Bands

Below are average salary ranges based on roles that Beringer Tame has recruited during the past 18 months.

ADD IMAGES

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Digital Marketing & Ecommerce Salaries P12M

National salaries remained steady throughout 2021 with ecommerce and digital manager roles (mostly) sitting above the national average. 

• WHY WOULD DM ROLES DISAPPEAR DURING THE SUMMER LAST YEAR?
  • "April 2021 showed tentative returns to normality, with the second week marked by the reopening of shops, hairdressers, and gyms.
  • Shoppers flocked back to the high street, with footfall on the highly anticipated UK retail re-opening of April 12th increasing by a massive 151%.
  • Omicron burst onto the scene in late November. In the week leading up to Christmas, the UK had amassed over 60,000 cases of Omicron. By Christmas Eve had nearly doubled to 114,000 cases."
• Ecommerce Manager vacancies remained stable over 2021, however, salaries increased as the hunt (and competition) for talent grew.
• Social Media Manager roles became one of the fastest-growing digital jobs as more brands began to grow their online presence.
• It's currently a candidate-driven market.
• blah blah...

  

 

Moving into 2022, there will be ongoing pressures on wages given the tight labor market and the availability of talent.

The phenomenon, dubbed the "Great Resignation" reached it's peak in Q4 2021 (in the general job market). 

"Pay growth often ends to move in tandem with the intensity with which employees switch jobs, as job switchers tend to experience higher rates of pay growth than those that stay." (KPMG). 

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The Effect of Brexit, Covid & the War on Digital & Ecommerce 

Both Brexit and Covid-19 have had a significant impact on the world economy, however, more recently Russia's invasion of Ukraine has led to further economic effects.

Increases in energy and other commodities, including food and fuel, have exacerbated disruption and delays within the global supply chain, heightening inflation and pressures on people's purses.  This will of course have an impact on ecommerce sales as discretionary income decreases and the ability to get products from suppliers and to customers slows. However, if you can stand out from the crowd (social media roles are in high demand), maintain demand, and keep on top of your business model, things should remain manageable.

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"The Bank of England can do little to combat high global energy and commodity prices, while their impact on inflation at the relevant policy horizon of 2-3 years’ time is also likely to be limited."

(KPMG)

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Changes to Salaries 2020 vs 2021

• blah blah
• blah blah

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The Digital Jobs Marketplace

blah blah

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Top Paid UK Jobs

Chief Executives once again take home the highest pay in 2021 with an average salary of £111,020.

(Findcourses.co.uk)

1. Chief Financial Officer
2. Executive Director
3. Chief Technology Officer
4. Senior Leader
5. Chief Operating Officer
6. Chief Executive Officer
7. Medical Manager
8. Director
9. Managing Partner
10. Technology Manager

(Glassdoor)

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The U.K.’s fastest-growing job digital sectors for 2021(CNBC)

1. E-commerce personnel 

Top jobs: Driver, supply chain associate, supply chain assistant, warehouse team lead, online specialist.

Top skills: Order fulfilment, retail, order picking, warehouse operations, professional driving.

Hiring hotspots: Birmingham, Northampton, Manchester, Leicester.

2. Digital content freelancers

Top jobs: Content coordinator, YouTuber, blogger, podcaster.

Top skills: Podcasting, YouTube, blogging, video editing.

Hiring hotspots: London, Birmingham, Manchester.

3. Creative freelancers

Top jobs: Writer, illustrator, voice-over artist, scriptwriter, editor.

Top skills: Editing, illustration, screenwriting, voice acting, writing.

Hiring hotspots: London, Manchester, Birmingham.

4. Social media and digital marketing

Top jobs: Growth hacker, growth specialist, marketing consultant, social media manager, social media coordinator.

Top skills: Digital marketing, growth hacking, growth strategies, social media marketing.

Hiring hotspots: London, Manchester, Belfast.

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UK SMEs are "full of ambition and confidence"

According to Mollie, UK SMEs

• saw an average of 27% ecommerce growth during 2021(vs smaller firms with 12% growth and larger firms at 34%).
• 70% expect this growth to continue in the next one to three years.
• 30% believe that their ecommerce activities will grow (39% on average) faster than in 2021.
• 0% felt that its growth in the next three years would be lower than it was in 2021.
• 88% say that growing revenue from customers outside of the UK is a key strategic priority (however only 37% of UK SMEs sell outside of England, Scotland, Wales, and Northern Ireland).
• SMEs working outside of the UK generate (on average) 17% of their revenue from customers based in the EU.

Barriers to working outside of the UK

• Integrated (& local) payment methods
• Sophisticated shopping experience to rival larger sellers

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"Less than half (46%) of UK SME ecommerce merchants have integrated content marketing capabilities (46%)."

(Retail Times)

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Consumer trends for 2022

Increase in a hedonistic mentality

• “You only live once” (YOLO) campaigns will resonate with consumers as they normalise experience vs safety.

The pursuit of purpose

• YOLO will manifest itself in the workplace through employees' search for meaning and happiness through a reassessment of priorities. 

Increased creativity

• With global online sharing rapidly growing (logging into TikTok every day has increased by 58%), brand focus should be on encouraging user-generated content.

Gaming isn't going anywhere

• It's increasingly becoming the central medium for young people due to its hybrid nature (social & competition).

Closing the chapter on perfection

• Aesthetics have changed and brands need to dig deeper in order to meet their consumer where they are when it comes to beauty and mental health.

Taking back control of wellbeing

• There has been a shift in how we think about health to a much more proactive approach in order to stay healthy.
• Employers need to think about implementing 'wellness days' alongside flexible working solutions as a business priority. 

Cryptocurrency is coming

• It is estimated that the global cryptocurrency market will more than triple by 2030 to nearly $5 billion. "Investors, businesses, and brands can’t ignore the rising tide of crypto for long".

Source: The consumer trends to know for 2022 - GWI

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Ecommerce Trends 2022

Social Commerce 

• shoppers have the ability to purchase directly through social media

Voice Shopping

• retailers need to start thinking about optimising their voice search strategies

Chatbots

• drive efficiency whilst also improving customer service

Personalisation

• tailoring your ecommerce experience to boost conversion rates

Customisable Products

• shoppers customise items online and have them delivered quickly

Live Shopping and Video Consultations

• a great way to increase customer spend through enhancing the online experience 

Artificial Intelligence and Machine Learning

• gives the ability to automate customer experience based on a range of chosen factors/ datapoints

Faster Payment Options

• make payments as quick and easy as possible (look at local options)

Flexible Delivery Options and Fulfilment Technology

• reduce abandoned purchases by providing satisfactory delivery methods 

Visual Commerce and Technology

• allow customers to enjoy your instore experience without having to travel to its physical location (AI/VR, etc)

Connected Commerce

• clear and consistent collaboration between all sales channels including apps, websites, social media, email, etc

Sustainability

• provide eco-friendly shopping (packaging and product)

Mobile Shopping

• more than half of all purchases take place on a mobile device so ensure your websites are mobile optimised

Subscription Models

• encourage regular purchases and money-saving to improve lifetime value

Source: Modern Retail

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A whopping 74% of job hunters are actually satisfied with their current role, meaning the desire for novelty trumps security. Working just for the sake of it is now largely seen as a waste of valuable time.

(GWI)

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Topics still to cover

- online sales tax - https://www.fibre2fashion.com/news/e-commerce-industry/snap-uk-retail-survey-shows-overwhelming-support-for-online-sales-tax-280295-newsdetails.htm

- raising seller fees - etsy & amazon

- London growth for unicorns

- Elon Musk - Twitter

- Netflix (see mailchimp)

- Meta

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Related Stories

Underlying UK wage growth lower than headline figures, think-tank warns - The FT

Average year-on-year growth of weekly earnings (3-month average) in the United Kingdom from March 2001 to February 2022 - Statista

Employment in the UK Feb 22 - ONS

Average UK Salary - FindCourses

Top 20 Highest Paying Jobs in the UK 2022 - Glassdoor

Global Economic Outlook - KPMG

Mollie survey reveals eCommerce SMEs plan huge growth - Fintech Finance

LinkedIn says these are the fastest growing job sectors in the UK - CNBC

UK Labour Market Stats - Adzuna

World Economic Update - IMF

The consumer trends to know for 2022 - GWI

Ecommerce Trends 2022 - Modern Retail