Salary Set to Increase in 2022

Latest pay data showing significant increases

HR Initiatives

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 Current Labour Market

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

Consideration for Employers

  • Have your current employee salaries and vacant roles been benchmarked against the current market? Consider implementing a review and looking at your overall benefits package, there maybe incentives that could boost the overall offering
  • The data shows the candidate are looking at the work/life balance when considering positions, so look beyond pay increases. Do you have flexible working opportunities? Do you offer a well-rounded health and wellbeing package? Many employer are making further invests here to provide a more attractive and competitive overall package to candidates
  • Retention of current workers is becoming more important to meet the issues of the current labour market. Have you got a strong training and development programme? Are vacancies being well advertised and incentivised internally? Investment here could help contribute to career longevity for existing worker, and utilisation of existing networks within the current workforce to attract candidates

Next Steps

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.

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