Higher Pay rises not forthcoming despite economic pressure

Pressures and tightening of budgets and the tightening of the economy has not meant higher pay for workers, according to a research survey released today by XpertHR.

“Employers may well be feeling under pressure to award higher pay increases” but conversely “the uncertain economic situation means that they are not reacting to this” and because of this pay rises are at best very small says Sheila Attwood from the survey. In fact the research points to an average increase of just 3% for the rest of 2011 as well.

Over 300 employers were asked questions in the survey and the median forecast pay increase was a miserly 2%. This has not left employees happy and the previous years of pay freezes and high inflation are just not translating to better pay deals. Employees are expected to dig in for higher pay rises but it is not thought that the employers will go above the 3% figure as quoted above.
Indeed pay freezes are on the increase as this accounts for 9.2 % of pay awards in March and nearly 25% in April.

Need help with your recruitment process? Get in touch!