As a business owner, it’s important to stay up to date on the latest payroll trends in the UK – so how is pay changing for the average worker?
According to new research from XpertHR, 90 per cent of UK employees can expect a pay rise in 2023. Of those receiving a pay boost, 62 per cent of these pay rises are expected to be higher than in 2022.
These findings highlight the importance of ensuring your business has the budget in place to offer competitive pay increases to your employees so that you can retain their expertise.
However, challenges remain and the research found that 98 per cent of employers cited upward pressure on their pay awards budgets.
The most common reasons for this included:
- 83 per cent – Inflation and the cost of living
- 73 per cent – Pay levels in the same industry
- 67 per cent – The ongoing skills shortage
Despite these challenges, three per cent of employees may experience a pay freeze in the coming year, while the outcome for the remaining seven per cent is still uncertain according to XpertHR.
Another factor impacting pay awards budgets is the rising national living wage. In April 2023, the national living wage increased by 9.7 per cent to £10.42, which has placed further pressure on businesses to ensure their pay rates are in line with the new standard.
It’s important to consider these findings and plan accordingly for your payroll budget in the coming year.
Staying competitive with pay rates and keeping up with industry trends is key to retaining your top employees and attracting new talent.
If you would like help setting affordable and competitive rates of pay in your business, please contact your Seymour Taylor representative today or email enquiries@stca.co.uk or call 01494 552100.
This blog is for guidance only, professional advice should be obtained before acting on any information contained herein. The information was correct at the time of publishing 11 May 2023.