Half of all employers based in the City and Docklands will increase staffing levels over the next six months, according to research by Robert Half Financial Services Group.

It found almost half of all employers expect starting salaries to rise in the first half of 2007. More than a third of all employers (36%) state that they plan to increase employee salaries during the first half of 2007 by an average of 5% and some respondents expect an increase as high as 10%.

The City Recruitment Index reveals that the main reason for companies increasing staffing levels in 2007 is due to business expansion (44%), increased workload (20%), and staff turnover (7%).

The research found that 11% of City and Docklands employers have introduced flexible working hours to existing benefits packages, with 9% now offering the option to work from home.