UK firms aim for moderate wage increases

12-02-2007

UK firms aim for moderate wage increases
UK employers are keeping their options open with regards to pay rises because of hiring problems and increases in inflation, new research suggests.

Results from the survey by the Chartered Institute of Personnel and Development (CIPD) show at least one in five employers are avoiding making a decision about pay rises until they have a clearer idea of the direction inflation is heading.

Nevertheless the majority of employers expect to award staff pay rises of less than 3.5 per cent.

The wider RPI measure of inflation used in wage deals - which includes mortgage interest payments - reached 4.4 per cent in December last year, which is the highest it has been since 1991.

Dr John Philpott, chief economist at the CIPD, said labour market conditions looked "conducive to moderate pay settlements this winter, with enough willing workers, especially migrants, to help employers withstand claims for inflation matching pay rises".

The report also suggests that 46 per cent of employers foresee difficulty with finding suitable recruits. However, 80 per cent said they expected staff numbers to increase over the next few months.

In October last year the government raised the adult minimum wage rate from £5.05 to £5.35 an hour. When plans for the increase were announced in March 2006, Alan Johnson suggested that the rise would benefit 1.3million people.

Related categories: HR / Recruitment.


Bookmark with:
Bookmark with: Digg Digg Bookmark with: Del.icio.us Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

See also:

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Automotive
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
Health / Beauty
Hotel / Catering / Restaurants
HR / Recruitment
Insurance / Pensions
International / Overseas
IT / Internet
Legal
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Telecommunications
Transport / Logistics
Travel / Tourism / Leisure