UK Reward Management Survey: Autumn 2026 early results

Pay transparency is becoming more important

Pay transparency is also moving up the agenda. Three quarters of respondents are utilising pay structures or scales, while 64 per cent are using formal job grading. Gender pay gap reporting is already well established, with 69 per cent conducting and publishing reports.

But there is still a difference between putting the structures in place and being completely open about pay. Only 36 per cent are publicly publishing salary ranges for roles. It will be interesting to see whether that changes as expectations around pay transparency continue to grow.

Recruitment pressures have eased, but they haven't gone away

The recruitment market is certainly less pressured than it was a few years ago. 38 per cent of organisations expect difficulties recruiting over the next six months, compared with 79 per cent in Autumn 2022.

Retention pressures have followed a similar pattern. 33 per cent expect difficulties retaining people, down from 70 per cent in Autumn 2022. That is a significant improvement, but it doesn't mean recruitment is easy.

Three quarters of respondents experience labour shortages at least sometimes, while 80 per cent report a lack of suitable candidates or skills. Almost half have also had to offer new recruits salaries that create differences with existing employees.

Employers are responding in a number of ways. Technology-led recruitment is the most common approach (69 per cent), followed by competitive benefits (66 per cent) and flexible, remote or hybrid working (60 per cent). Internal recruitment, employee referrals and making more of the wider employee proposition are also popular.

Retention is about more than pay

Pay is important, but it is clearly not the only tool employers are using to retain people. Analysing exit interview feedback is the most commonly adopted approach, alongside communicating the wider reward package, flexible working, reviewing benefits, improving employee engagement and offering clearer career paths.

With pay budgets still relatively tight, employers are having to think more broadly about what makes people stay. Flexibility, development, management and the overall employee experience all have a part to play.

What does this mean for reward teams?

The early Autumn 2026 results point to a reward market that is more stable, but also more selective. For many employees, the headline pay increase is likely to be around 3 per cent. But that doesn't tell the whole story.

Higher increases may still be needed for employees affected by the National Living Wage, scarce skills, key roles or people employers are particularly keen to retain.

For reward teams, the challenge is therefore a familiar one: balancing what the organisation can afford with what it needs to do to attract, retain and motivate the people it needs. And with pay budgets constrained, being clear about how decisions are made remains important.

Have your say

The UK Reward Management Survey has tracked reward and employment trends for more than a decade. If you haven't yet taken part, we'd encourage you to share your experience. The more organisations that contribute, the more useful the results become for everyone working in reward, HR and people management. Complete the UK Reward Management Survey and help us build the full picture of reward in the UK. All participants will receive a free copy of the comprehensive trends report in return for taking part.