Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • 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
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • 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
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Latest NewsPay & benefitsPay settlements

Pay settlements rise as employers reward staff loyalty

by John Eccleston 21 Jan 2011
by John Eccleston 21 Jan 2011

Pay awards concluded in January 2011 are worth more than those for the same period in 2010, according to research published today.

According to data from XpertHR, in the second half of 2010 pay awards stood at a median 2% increase. But examination of pay deals effective in January 2011 reveals that the median pay rise has risen to 2.5%. This is now 2.2 percentage points higher than the median 0.3% pay increase recorded in the three months to January 2010.

The analysis suggests that employers are starting to reward employees for their loyalty following two difficult years. Several employers surveyed said that employees were not surprised by pay freezes during 2009 and 2010, but that they would be “very unhappy” with another year without an increase. Almost two-thirds of pay awards recorded for January 2011 are higher than those awarded to the same group of employees one year ago.

However, the picture of pay awards differs vastly between the public and private sectors. All of the January pay awards recorded by the survey so far are in the private sector. In the public sector, employees earning more than £21,000 per year will be subject to a pay freeze this year, while those earning below this level will receive a £250 flat-rate rise, worth less than 2% for the lowest paid.

According to XpertHR, while employees will welcome the news that higher pay rises are a possibility this year, rising inflation will eat away at the value of any increases. Few employees can expect to receive a “real terms” increase in pay, as RPI inflation – the key benchmark for pay awards – is currently at 4.8%, 2.3 percentage points above the value of pay rises.

XpertHR pay and benefits editor Sheila Attwood said: “We are finally seeing signs that the level of pay awards is picking up. 2010 was characterised by the sheer number of pay freezes made, with almost three in 10 organisations refusing employees a pay rise. Not only has the median pay award now risen to 2.5%, but we have only a couple of pay freezes recorded for January 2011. There are real signs that private sector employers will be making higher pay awards in 2011.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

“In contrast, public sector workers are facing a less than 2% rise at best, with many having their pay frozen in 2011.”

XpertHR pay trends for January 2011 in full.

John Eccleston

previous post
Freelancers key to SME growth
next post
HR ‘not yet a strategic business partner’, say HR directors

You may also like

Number of Neet women rises but figures fall...

23 May 2025

Bank holidays: six things employers need to know

23 May 2025

Unions ponder strike action after public sector pay...

23 May 2025

Personnel Today Awards 2025: Three weeks left to...

23 May 2025

Sighing in frustration at colleague was discriminatory, judge...

23 May 2025

Flexible working for teachers initiative extended

23 May 2025

Fire and rehire: the relocation question

22 May 2025

Public sector workers gain pay rises of up...

22 May 2025

Six ways to kickstart conversations about team stress...

22 May 2025

UK net migration slashed by half in one...

22 May 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...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 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • 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
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+