Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Latest NewsPay settlements

Employers forecast highest pay awards for four years

by Ashleigh Webber 22 Mar 2018
by Ashleigh Webber 22 Mar 2018

Pay awards in 2018 are expected to be at their highest in almost four years, with employers planning to increase their pay by an average of 2.5% over the coming year, according to XpertHR.

A survey of more than 200 private sector employers found that they were more optimistic about the pay increases they plan to offer their staff in 2018 than six months ago, when they expected to offer a 2% pay rise.

Of the organisations surveyed, the most common pay award prediction remained at 2%, with 28.9% of employers expecting to offer this level of increase. One in 10 (11.4%) employers forecast a pay increase of 4% or more, while just 5.3% of employers predicted a pay freeze.

Pay awards

Pay awards: 22 March 2018

Pay trends March 2018: Upturn in pay awards continues

Forecasts for pay awards in 2018

In the three months to the end of February, XpertHR found there was a 2.5% median basic pay increase, based on data from 169 pay awards.

Almost six in 10 (57.3%) of pay awards were higher than the increase received by the same group of employees last year. Only a quarter (26%) of pay awards were the same, while 16.8% were lower.

The median pay award in the private sector was 2% over the 12 months to the end of February, compared with 1% for public sector organisations.

XpertHR pay and benefits editor Sheila Attwood said: “It is several years since employers have been so optimistic about prospects for pay rises. If private sector pay awards stick at 2.5% over the course of the year, this will mark the first time since 2012 that increases have been consistently above 2%.”

Employers in the manufacturing and production and services arms of the private sector expected that 2.5% will be their benchmark pay award in 2018.

Organisations said they were looking for a more stable economy before implementing higher pay increases, with the uncertainty around Brexit having an impact on market confidence.

However, pressure to increase pay awards came from recruitment and retention issues and an awareness of what other organisations were paying their staff.

One-third (32.5%) of employees expected to receive a higher pay increase than they did last year – the highest proportion found by XpertHR since 2011.

On Tuesday, inflation measured by the consumer price index fell faster than economists expected, from 3% in January to 2.7% in February.

Ashleigh Webber
Ashleigh Webber

Ashleigh is editor of OHW+ and HR and wellbeing editor at Personnel Today. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. She has hosted many webinars for Personnel Today, on topics including employee retention, financial wellbeing and menopause support. Prior to joining Personnel Today in 2018, she covered the road transport sector for Commercial Motor and Motor Transport magazines, touching on some of the employment and wellbeing issues experienced by those in road haulage.

previous post
Supreme Court rules former Johnson Matthey employees entitled to compensation
next post
More than half of HR professionals expect a pay rise in 2018

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

You may also like

Historical holiday underpayments must be paid

4 Oct 2023

MAC recommends scrapping shortage occupation list

4 Oct 2023

Advanced British Standard: Teacher recruitment plans ‘pie in...

4 Oct 2023

Scientist wins £340,000 in age discrimination case

4 Oct 2023

Lucy Letby: Hospital faces corporate manslaughter probe

4 Oct 2023

Sham training of security officers exposed

3 Oct 2023

ICO publishes workplace monitoring guidance

3 Oct 2023

Consultants offer ‘olive branch’ on strikes

3 Oct 2023

Personnel Today Awards 2023 shortlist: Innovation in Recruitment...

3 Oct 2023

Top 10 HR questions September 2023: the role...

3 Oct 2023

  • Almost a fifth of UK workers feel undervalued – we need to solve this PROMOTED | A new report has found...Read more
  • Discover the value of CIPD accreditation PROMOTED | See how the CIPD can increase your earning potential...Read more
  • What does it mean to be an HR professional in 2024? (survey) PROMOTED | The world of HR is changing rapidly...Read more
  • The Contractor Management Mastery Pack: Everything you need to manage and pay global contractors PROMOTED | Answers to cross-border...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2023

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2023 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+