Pay settlements set to fall for rest of 2024 | Consensus HR – Herts, Beds
According to the latest Labour Market Outlook, produced by the Chartered Institute of Personnel and Development (CIPD), employers’ basic pay increase expectations over the next 12 months have fallen for the first time since spring 2020.
Having held steady at 5% for more than a year, UK employers expected basic pay increases for the year ahead have fallen to 4%, the CIPD has reported.
Its report also shows that fewer employers expect their workforce to grow than in previous quarters. Overall, a third (33%) of employer’s plan to increase their total staff level over the next three months while 10% plan to decrease their overall staffing levels.
However, many employers (38%) continue to report hard-to-fill vacancies and one in five respondents (21%) expect significant problems filling roles over the next six months.
Senior Labour Market Economist for the CIPD, Jon Boys, said: “We’ve seen a sustained period of high wage growth in response to a tight labour market, and high inflation pushing up the cost-of-living. Pay growth has helped individuals but it leaves employers with a higher wage bill to cover.”
To see a sustained return to growth, he continued, there needs to be a real focus on boosting productivity by investing in workplace skills and technology.
If firms are planning to reduce base pay increases, Mr Boys suggested that it would be in their interest to highlight their wider benefits package and to improve job quality.
The Labour Market Outlook for Winter 2023–24 can be found here.
HRInform – 13th February 2024
Our HR Comment: – Pay settlements set to fall for rest of 2024 | Consensus HR – Herts, Beds
Matthew Chilcott, FCIPD, ACEL, Owner of Consensus HR comments: “This article from the CIPD, our Chartered Institute has some very interesting statistic and emphasises the importance of business ensuring that their recruitment strategy for their business is correct and attracting / retaining the right talent. A Consensus HR, we work with companies to ensure that when they do recruit, they have all the correct tools in place to make it a success such as: Right advertising and marketing, correct recruitment strategy, writing of a Job Description, drafting of an applicable Contract of Employment, which they must have from day one of Employment. Access to a comprehensive HR Employee Handbook and state of the art IT system where they can gain access to all their / companies HR Policies and Procedures and records and book a holiday. Consensus HR help companies in all areas of Human Resources whilst making sure that our clients are never treated as a number and when they call us, we know straight away what they wish to discuss whilst providing a suitable best practice and Employment Law solution.”
