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One in three businesses are increasing starting salary offers and a third are offering more workplace benefits because of greater competition for talent.Īs businesses seek to support staff through the cost of living crisis over the next six months, 59 per cent of companies in the region plan to raise salaries by 4 to 8 per cent and a further 26 per cent will consider pay hikes of 9 per cent or more in line with current inflation rates.Īside from changes to salary, 56 per cent will offer one-off bonuses and half of businesses will offer benefits in kind, such as shopping vouchers, childcare support, free travel or meals at work.Īngela Cross, head of tax at BDO in the North West, said: "Businesses in the region continue to face extreme challenges from supply chain to rising energy costs and, as interest rates continue to rise, this is placing a real squeeze on company finances. However they face challenges in doing so with 24 per cent struggling to find talent with the right skills. The bi-monthly Rethinking the Economy survey of 500 leaders of medium-sized businesses found 29 per cent of businesses in the region are planning to grow their workforce currently.
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Nearly half (47 per cent) of mid-sized businesses in the region said supply chain issues are the biggest threat to business success over the next six months and 35 per cent are most concerned about the record levels of inflation.
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Supply chain and inflation woes are among the biggest challenges for businesses, according to new research by accountancy and business advisory firm BDO.
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