Why Scots workers face an £8,318 ‘dream versus reality’ salary gap, and what they can do about it

Scots face an £8,000-plus “dream versus reality” salary gap, according to new research.

On average, workers north of the Border say a comfortable salary would be £43,836 - which is £8,318 higher than the average Scottish salary of £35,518, the research collaboration between St James’s Place Financial Adviser Academy and hiring platform Indeed reveals.

The study, which shines a spotlight on the “dream vs reality” salary gap across the UK, highlights some sizable regional differences. Perhaps unsurprisingly the gap is larger in London than anywhere else. Workers in the UK capital say a comfortable salary is £68,793 – a whopping £24,423, or 55 per cent, higher than the average salary of those working in the city, which currently sits at £44,370.

The research collaboration between St James’s Place Financial Adviser Academy and hiring platform Indeed shines a spotlight on the 'dream vs reality' salary gap across the UK.

After London, the gap is highest in absolute terms in the south west of England, at £14,420. Meanwhile, Northern Ireland and Yorkshire and Humberside have the smallest gaps in expectations, at just £6,407 and £7,682 respectively.

Around one in five (21 per cent) of workers in Scotland are not satisfied with their career. The most common reasons why Scots are dissatisfied with their careers include wanting to do something more meaningful, finding their career boring/unfulfilling and an unhealthy/toxic work life balance.

Scots and Londoners were found to desire an imminent career switch the most with 41 per cent in both areas ideally looking to switch jobs in the next 12 months. Of those who desire an imminent career switch, the biggest reasons holding people back are: Don’t know what career they’d change to (28 per cent), lack confidence to start over (26 per cent) and being worried about having to take a pay cut (22 per cent).

The most popular components of Scots workers’ ideal career would include a comfortable salary, a healthy work/life balance (cited by almost half of those quizzed) and an ability to work flexible hours.

Jack Kennedy, senior economist at Indeed, said: “The fear of taking a short term pay cut seems to be standing in the way of people switching careers, which is understandable in the current economic climate. While it may take a little time to realise your earning potential in a new career, a bit of planning can help you take the leap - and ultimately find a career with which you’re more satisfied.”

“Building up some savings to fall back on, or training for your new career by taking courses in your free time can help set you up, as well as researching roles that will give you everything you’d like. There are so many under-considered career routes offering above average earnings and lifestyle benefits, such as flexible working, that people can feel optimistic about the options that may be open to them.”

Gee Foottit, partnerships manager at the St James’s Place Financial Adviser Academy, said: “In [London] there’s a clear connection between the salary expectation gap and workers’ appetite to switch careers, but it’s fascinating that across the UK more broadly we don’t tend to see the same trend. Those working in the south west, for instance, which has the second highest expectation gap, are some of the least likely to want to change their career path.

“This reflects our experience at the Financial Adviser Academy. While earning potential is certainly one motivation for the 300+ people that choose to start new careers with us every year, wider factors such as the desire to work more flexibly, to be their own boss, help others or do more purposeful work are all very strong drivers too.”

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