New research reveals that wage pressures across the UK, including high inflation, are not leading to salary increases
New research released by XpertHR
suggests that wage pressures throughout the UK economy are not leading to higher pay rises.
Salaries have stayed relatively flat over the last two years, with few or no pay rises. Despite this stagnation, in addition to high inflation and an improved business outlook, salaries are still not increasing proportionately.
Half of all basic pay awards are valued at between two and three percent, while 14 percent are worth less than two percent and 14.5 percent more than three percent. The median basic pay award in the first three months of 2011 was 2.3 percent.
"Employers may well be feeling under pressure to award higher pay increases. But, at the end of the day, the uncertain economic situation means that they are not reacting to this pressure, and continue to award only modest pay rises," explains XpertHR pay and benefits editor Sheila Attwood.
"It is likely that employees will continue to exert pressure on employers for a decent pay rise, but our research suggests that pay rises will remain well below 3% for the remainder of 2011."
XpertHR also questioned 315 employers on their intentions for the next 12 months, revealing that the forecasted median pay increase is 2 percent.
Pay awards in the three months to April 2011, typically the busiest month in the pay-setting calendar, shows that pay awards have fallen to a medium 2 percent basic increase.