Latest pay data showing significant increases
The latest data on UK salaries are showing pay rises of 3% in 2022, the highest in at least a decade, though well below the rate of inflation. These pay trends are reflective of employers efforts to recruit and retain employees in the current competitive labour market.
Along with the pay rises, employers are also offering greater incentives such as providing more flexible jobs, hybrid working at home and offices, four-day week with no loss of pay, and more training and progression opportunities.
The pay rise trend is being driven by the tighter labour market, with employers expecting to have difficulties filling job vacancies according to Labour Outlook Survey conducted by the Chartered Institute of Personnel and Development (CIPD).
The survey found that almost half of the recruiters surveyed said they were struggling to fill vacancies, and 41% said more staff were leaving – a phenomenon called the “great resignation” as workers look for better opportunities elsewhere.
The hospitality sector is amongst the sectors that has faced the greatest difficulties attracting workers. This has been due to the drop in immigration caused by the pandemic and Brexit, which has seen salaries for jobs in hospitality increased up to 12% according to Caterer.com.
If you have any questions, or would like support with any of the above, then do get in touch with our partners HR Initiatives Limited.
Emma Williams – Managing Director, HR Initiatives Limited
HR Initiatives provides expert HR advice to SME businesses. The team of HR professionals have extensive experience in HR management and help businesses navigate a safe path through the minefield of HR.