News
Danny McCance 13 Nov 2017 11:48am

Employers under no pressure to increase wages

Despite slow wage growth and low unemployment, employees are not pushing for more money

Only a quarter of those in the UK private sector felt pressure to increase wages, and 38% reported being under no pressure, according to a survey of 2,000 employers by the Chartered Institute for Personnel and Development (CIPD).

The pressure was higher for employers of those in specific skilled roles (36% ), and also in the public sector where 59% reported significant or some pressure.

Pressure regarding specific roles in the public sector, however, was lower at 25%.

Almost a quarter of private sector employers (23%) noted recognition among employees that the businesses couldn’t afford to pay them more.

Last week, figures from KPMG suggested that one in five people in the UK are still earning below the real living wage.

There was little skills-based necessity for pay rises, as the reported lack of pressure related to a skills shortage, with only 29% of all employers reporting a skills shortage based vacancy. In the private sector, this fell to 13%.

The basic pay rise expectations in the next year have doubled since last quarter to 2%.

Last week, it was revealed that FTSE 250 CEO’s saw their median basic salary increase by 11% since 2015, to £1.8m.

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