Pay increases planned by more than one in four employers, finds REC
Asked whether they anticipated increasing wages of current employees at their business or organisation this year:
· 11% say all staff are expected to get a pay rise
· 17% say some staff will get a pay rise
· 14% say they didn’t plan to increase anyone’s pay
· 40% haven’t decided
· 7% don’t know
· 11% won’t say
The REC’s chief executive Kevin Green says:
“Employers are more able to find cash to reward staff as the economy picks up and confidence grows. We also know starting salaries for new joiners and hourly pay rates for temporary staff have increased sharply at the start of 2014. With inflation coming down, this all points to the squeeze on peoples’ pockets beginning to ease.
“Another factor for employers will be the growing scarcity of skilled candidates. As that becomes more apparent in a range of sectors from white collar IT and management roles, to drivers and caterers, businesses will be keen to do what they can to hang on to the staff they have.”
The survey also reveals that more employers plan to increase their workforce over the next quarter and next 12 months.
Asked about their plans for permanent headcounts in both the short and medium term:
· 76% employers say they will make more offers of permanent work in the next 3 months, up 7 points from February survey.
· 81% say they will directly employ more staff over the next 4-12 months, up 9 points since February.
When planning about future use of agency workers:
· 48% employers predict they will increase their use of temps over the next 3 months, up 1 point from last month.
· 48% say they will engage more agency workers over the next 4-12 months, up 2 points from last month.