Hr Services

5% Pay rises this year

According to a recent survey by the Chartered Institute of Personnel and Development (CIPD), UK employers are planning to increase pay by 5% this year, the highest rate since 2008. This reflects the growing demand for skilled workers in a tight labour market, as well as the rising inflation and cost of living.
The survey also found that employers are increasingly making counteroffers to retain existing staff, who may be tempted to look for better opportunities elsewhere. The CIPD warned that this could create a "competitive spiral" for talent and undermine employee morale and loyalty.

The CIPD urged employers to adopt a more strategic approach to reward and recognition, rather than relying on short-term financial incentives. It suggested that employers should focus on creating a positive work environment, offering flexible working arrangements, providing career development opportunities, and enhancing employee wellbeing and engagement.

The CIPD's senior policy adviser, Charles Cotton, said: "While pay is important, it's not the only factor that influences how people feel about their work. Employers need to think holistically about how they attract, motivate and retain their staff, and ensure that their reward practices are aligned with their business objectives and values."

View more of our

Related Posts

The Government is cracking down on Umbrella Companies

Kathryn B

A new legal challenge could expose UK employers to the risk of being sued for tax evasion by umbrella companies

Thursday, June 8, 2023
Breaking the Silence, Explore strategies to empower line managers

Kathryn B

Discover line managers' critical role in shaping employee communication

Tuesday, June 6, 2023
Seeking HR Advice

Oscar H

Why Small Businesses in the UK Shouldn’t Be Afraid of Seeking HR Advice

Tuesday, May 23, 2023
Employers cutting back on permanent staff

Oscar H

Unpredictability around the outlook leads to greater reliance on temp staff in April

Thursday, May 11, 2023
Flexible working is not equal for all.

Loen M

The CIPD has ranked UK nations and regions from most to least flexible in terms of working arrangements.

Monday, November 7, 2022
Not enough candidates

Kirsty P

The lack of candidates is driving up salaries.

Monday, November 29, 2021
Attracting the right candidates

Loen M

What are you doing differently to attract the candidates you want?

Sunday, November 14, 2021
The New Normal -Hybrid working

Christina H

Ideas for returning to the office

Friday, September 10, 2021