COMP NEWS – UK employees will see lesser increases in salary increases in 2024 as companies plan to spend money to increase their workforce numbers.
UK employees can expect lower salary increases as employers reduce hiring plans for 2024, with a widening wage gap seen between private and public sector workers.
Employees in the UK may be looking at a drop in salary increases this year as employers cut back on their hiring plans, according to a new report from the Chartered Institute of Personnel and Development (CIPD).
The findings come from a survey conducted last month, involving 2,006 employers and focusing on their approaches to pay, staffing levels, and job vacancies.
After staying at 5% for some time, expected basic pay rises have dropped to 4%, marking the first fall since the beginning of the Covid-19 pandemic.
While the private sector will likely see a decrease in pay increases, the public sector is planning to cut staffing levels altogether.
Within the private sector, the average expected basic pay increase was down from 5% to 4% on the last quarter while, in the public sector, expectations fell further from 5% to 3%.
“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,” said CIPD senior labour market economist Jon Boys.
“To see a sustained return to growth, there needs to be a real focus on boosting productivity by investing in workplace skills and technology.”
As far as staffing levels are concerned, the picture is different between the public and private sector. A third (33%) of employers in the private sector plan to increase their total staffing level over the next three months while one in 10 (10%) plans to cut overall staffing levels.
However, in the public sector, nearly one in five (18%) of employers is planning to cut staffing levels over the same period.
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