Pay settlements for the year ahead look set to remain at 3 per cent, according to new figures.
The annual pay prospects survey of 297 organisations by Personnel Today’s sister publication IRS shows that more than 40 per cent of respondents expect to award a 3 per cent pay rise at their next review.
Pay settlements have remained at the same level for the past 18 months, and the widespread prediction is that this will continue. However, the survey also shows that upward influences are beginning to mount, and employers are under pressure to increase settlements above this level.
Company performance or ability to pay is the most common determinant, cited by 91 per cent of employers surveyed. This was followed by the level of inflation (74 per cent) and an inability to increase the price of products or services (26 per cent).