The CIPD points out that the government’s decision on National Insurance contributions may be a “huge relief”, but suggests that this saving could be reinvested back into supporting employees. Our customers were already reporting that they were striving to support their employees amid rising costs before this policy reversal, with some offering a one-off cost of living payment or a second pay review in unprecedented times.
This was especially true in certain sectors where increases in the market were reaching unprecedented levels, such as Construction. Employers were keen to avoid setting this precedent, so supplementary payments and second pay reviews were being explored. We track one off, consolidated payments made outside of the official pay review cycle and our data reveals that 78 per cent have used out of cycle pay reviews to bridge the gap between pay that now falls below official inflation figures and wider market conditions. 85 per cent were anticipating using out of cycle pay reviews throughout 2022.
Opportunity and growth
Employers are also facing a skills shortage, which is exacerbated when it comes to certain roles. Deloitte is among the firms who are expanding, recently announcing that they are hiring 3,500 new consultants to meet the demand for their services. With plans to invest £220 million in digital transformation, technology and advisory skills over five years, the consulting practice has 725 open vacancies for roles including digital architects, machine learning engineers and data scientists, demonstrating the roles of the future and the growth of the tech industry.
Many organisations are looking to upskill existing workforces and focus on early careers roles to train graduates and apprentices and fast-track their development. However, from young professionals to experienced hires, pay will be a key part of finding the right talent and ensuring they stay with the company after they invest heavily in the training of each individual. With increasing market pressures and the changing landscape of roles, HR needs to remain agile and responsive. The question about fair and competitive wages will be a key part of how businesses approach the war for talent.
Accurate and up to date data
Working alongside our customers, we can help you develop thoughtful solutions tailored to your individual challenges. With 77 per cent reporting retention challenges and 81 per cent expecting recruitment challenges in our spring UK Reward Management Survey, pay is a cornerstone of your approach which we often describe as a hygiene factor. Fair and competitive pay is expected, and failure to set this at the right level can exacerbate these employee turnover challenges for organisations.
Our reports are a leading source of UK salary data. We can provide you with the expertise and insights to help make core decisions around pay and reward practices that can weather this economic turbulence. From healthcare to construction, utilities to student accommodation, we can provide sector specific data on your pay practices, enabling you to offer competitive salaries and benefits packages. This data is continuously updated, ensuring that you receive the most accurate pay insights that are relevant to you.