Pay awards centred on 3% for first quarter 2012 - IDSPay.co.uk

PAY DATA

Pay awards centred on 3% for first quarter 2012 - IDSPay.co.uk

Pay settlements in the private sector were focused on the 3% mark during the first quarter of 2012, according to the latest data from IDSPay.co.uk.

This 3% figure represents the median pay settlement recorded in the three months to the end of March 2012, as well as the average level and the most commonly-recorded individual increase over the period, with more than one in five settlements pitched at exactly 3%.

These figures are all unchanged from the previous reference period, covering the three months to the end of February 2012. IDS researchers recorded an increase in the proportion of settlements recorded between 3% and 3.99%, at 38% of deals compared with 33% in the three months to the end of February. Meanwhile, the proportion of settlements resulting in pay freezes has remained fairly constant, at 8% of pay reviews, primarily in the manufacturing, construction and not-for-profit sectors. At the other end of the range, a fifth of reviews resulted in awards of 4% or higher.

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Industry variations

• Finance and retail sectors have typically been paying slightly below the 3% benchmark figure.
• However, increases in the transport and at a number of media employers have been above 3%.
• Similarly, within the broader manufacturing and production sector, above-average increases are found in oil and in vehicles and components manufacturing.
• But lower awards have been recorded in construction and in chemicals and pharmaceuticals manufacturing.

Summary of key settlement data

For the three months to the end of March 2012, based on 114 settlements covering 452,000 employees in total, the key IDS statistics are these:

• Whole economy median: 3.0%
• Whole economy average: 3.0%
• Whole economy inter-quartile range: 2.5% to 3.5%
• Private sector median: 3.0%
• Manufacturing and production median: 3.0%
• Private services median: 3.0%

A final word

“While pay settlements are showing more strongly than last year, the median remains below inflation for the moment. The failure of wage rises to keep up with increases in the cost of living is placing downward pressure on household incomes, alongside other factors, and this in turn is having an effect on consumer spending. As a result, what happens to inflation will be extremely important for decisions on pay over the coming months. And in a period when the spotlight is firmly on the figures for economic growth, pay outcomes will also have significance for the economy as a whole.” - Ken Mulkearn, Editor of IDS Pay Report.

Want to know more?

IDSPay.co.uk is an online source of all the remuneration data collected by IDS, on pay settlements, pay levels and executive compensation. Visit www.IDSPay.co.uk to see a demonstration or to sign up for a free trial.

IDS Pay Report, published fortnightly, is the UK's “leading source of research and analysis on pay and benefits across the economy”.

Incomes Data Services is the “leading UK information and research service on employment issues, providing a range of publications for employers, trade unions, government departments and other agencies”. For more details visit www.incomesdata.co.uk.