One in four (26 percent) staff should expect to receive a pay rise, according to UK business leaders. Financial pressures are cited by more than half (56 percent) as a reason for wage stagnation. Contributor Matt Weston, Managing Director – Robert Half UK.
Research by Robert Half UK reveals that on average, UK business leaders expect to give a pay rise to just one in four (26 percent) employees. One in 10 (11 percent) won’t be considered for an increase, while the remaining two-thirds (63 percent) face an uncertain future when it comes to their salary prospects.
Financial pressures are cited by more than half (56 percent) as the reason behind stagnant wages. This echoes gloomy growth projections for the UK economy with many (44 percent) also claiming they believe they already pay their employees a fair wage that is in line with current market rates.
These reservations to increase pay could undermine firms’ ability to retain staff in a highly competitive market – particularly when only a third (36 percent) of business leaders regularly offer their employees salary review discussions.
“Salary typically isn’t the only motivation for an employee deciding if they should look for a new job; however, it can be key contributing factor” said Matt Weston, Managing Director at Robert Half UK. “Opportunities to learn, feel valued, and gain additional responsibilities are all factors employees’ consider when deciding their next career move. The lesson here for business leaders is to ensure that current staff are offered these opportunities, or they will look for greener pastures – often with competitors.”
“If unable to provide a raise, business leaders should sit down with their employees to discuss alternative ways to reward performance. Some common options include additional annual leave, flexible benefits or a performance-based bonus,” Weston continued.