Our 2021 work and pay report, Understanding the Impact of COVID-19, is out. As in previous years, it is based on more than 35,000 data points, combining proprietary data from Movemeon.com and Payspective.com with a survey of our candidate community of 50,000 strategy and commercial professionals.
The report answers questions about pay and job satisfaction by industry, role type and country. This year, we have also added insights about the impact of COVID-19 on compensation and the workplace. Here, we’ve put together a preview of some of our key findings for 2021.
1. COVID-19 and pay expectations: moving to an employer’s market
Candidates usually expect a higher salary than employers offer.
In 2019 the difference between the two was 27%. This has gone down by over 1/3 to 17% in 2020.
This shows that power has shifted to employers – a clear sign of the downturn in the job market at the outbreak of the pandemic.
2. Government support: PE/VC funds least reliant on government schemes during the pandemic
20% of corporates, consultancies and startups have taken government support during the pandemic.
However, although this is a lower proportion of all their employees than in previous years, they were still able to give pay rises to c. 50%.
PE/VC funds have been much less affected by the pandemic – fewer have taken government support, and they were able to give pay rises to 75% of their employees, an increase compared to the 50% that received increased pay in 2019.
3. Freelancing: transformation / cost cutting freelancers have seen increased demand
About 50% of all freelance projects last 2-6 months, but over 10% are long-term projects that run for more than a year.
While most freelancers did not see a change in project length due to COVID-19, there is a significant share who experienced shorter projects.
Additionally, the economic downturn brought on by the pandemic has made transformation & cost cutting projects more popular.
4. Happiness & work: COVID-19 has increased working hours taken a toll on mental health
Average working hours have increased by 4% since 2019. As a rule, startup and corporate employees also work more hours as their seniority increases, while the opposite is true for consultancies and PE/VC funds.
While hours have not seen a drastic change, the mental health impact of the pandemic has been marked. 50% of professionals say it has had a negative effect on their mental health.
For many, the progress and handling of pandemic has become the dominant in determining their happiness at work – previously dependent on the balance between pay and working hours.
While vaccines provide a ray of hope, the pandemic is far from over, and we are still to see its full impact. Nevertheless, our analysis can shed light on some of the ways COVID-19 has impacted every aspect of the job market. Additionally, it provides in-depth comparisons of pay and job satisfaction by industry, role type and country, and much more. Request the full report here.
Want to better understand your pay, progression and hours? That’s what we have created Payspective for.
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