Private sector employers are expecting pay awards over the coming year to be at 2%, according to XpertHR’s latest forecast based on a survey of 313 UK organisations. This continues a pattern established after the financial crash of 2008, since when XpertHR’s headline measure – the median level of settlements – has stood at 2.5% or less in the sector following a period where they fluctuated between 3% and 3.5%.
Rachel Sharp, XpertHR pay researcher, said:
‘Instead of making higher pay awards across the board, employers are having to target their spend into areas where the labour market is tightest. Employees across the private sector are likely to be bitterly disappointed that their employers still don’t feel in a position to award higher pay rises than we’ve seen over the past few years.’