At the halfway point in the year, pay awards remain high but continue to lag behind inflation, implying many employees are still facing a real-terms cut.
XpertHR's latest analysis of pay settlement trends takes in April pay reviews, the most common month in the year for this activity. The data reveals no let-up in pay pressures, with the median standing firm on the level recorded in the first quarter of the year.
XpertHR's headline measure of basic pay awards remains unchanged in the three months to the end of March 2023, with April settlements likely to follow suit.
In early 2023 pay awards reached a 32-year high on the back of a tight labour market and cost-of-living crisis. Our latest survey looks are how organisations are planning to compensate their workforce this year.
XpertHR's headline measure of basic pay awards has risen to 6% over the three months to the end of January 2023, one percentage point higher than in the previous rolling quarter, reaching a 32-year high.
As 2023 dawns it appears likely that pay awards will continue to lag behind inflation over the next 12 months, with the resulting cut in real wages set to hit employees hard.
Our survey looks at the use of performance-related pay schemes, the factors taken into account when deciding the pay rises and the effectiveness of such schemes.
XpertHR research explores current activity in the UK labour market, including recruitment metrics and key challenges for employers in retaining employees.