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 News

Private sector set for modest pay increases

by Personnel Today 29 Oct 2002
by Personnel Today 29 Oct 2002

Employers
are less confident than a year ago about their ability to keep a lid on pay
rises in the forthcoming wage round, according to research published today by
IRS.

The
IRS Employment Review annual Pay Prospects Survey 2002, now in its fourteenth
year, reveals that a modest upward movement in private sector pay settlements
is likely in the 2002/03 pay round. From the current level of 2.5 per cent, the
scale of this shift will be small, however, with the median settlement likely
to edge up towards 3 per cent during 2003.

This
year’s survey of pay prospects is set amid a mixed economic climate – while the
manufacturing sector is still in recession, much of the service sector has
recovered from the weakness of a year ago: employment levels are high and stable,
while inflation and interest rates are low, and the public finances remain in
good shape.   

The
key findings of the research  –
conducted during September 2002 – are based on 241 responses from managers
across the private sector. These include: 

Pay
Prospects    

–
Almost one quarter (22.6 per cent) of employers expect to award a pay rise that
exceeds the previous one, compared to just one in 10 a year ago. 

–
The proportion forecasting ‘no change’ in their forthcoming deal is similar to
that of a year ago, while just one in five now expect to award a lower deal –
down from 35.7 per cent last year.            

–
Manufacturers are more likely to award a higher settlement than service sector
organisations. 

Key
influences on pay

–
Company performance and the rate of inflation remain the two most important
factors likely to influence the forthcoming pay round.

–  Comparability with industry pay levels
remains an important influence, while recruitment and retention issues are
considered to be less significant than a year ago.                

Reward
strategies

–
Provision of stakeholder pensions is now more widespread.  More than a quarter of respondents now offer
stakeholder pensions, compared to just 22.6 per cent last year.

Pay
and benefits editor for IRS Employment Review, David Carr said: “Looking into
2003, and provided there are no significant adverse shocks from such things as
an oil price spike, the picture is one of a gradual upturn in UK economic
growth, a continued high level of employment and a moderate pick-up in the rate
of inflation.  

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.

"Settlements
have remained restrained in recent months, at close to the 2.5 per cent level
of rising inflation. This pressure may increase towards the middle of next year
and both employees and employers are well aware of this.”

By Quentin Reade

Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

previous post
TMP Worldwide Award for innovation in recruitment and retention
next post
MEP defends temps directive for its flexibility

You may also like

Restaurant tips should be included in holiday pay

21 May 2025

Fewer workers would comply with a return-to-office mandate

21 May 2025

Redefining leadership: From competence to inclusion

21 May 2025

Pay awards in real terms could fall for...

21 May 2025

Ryanair demands flight attendants pay back salary increase

21 May 2025

Consultation launched after Supreme Court ‘sex’ ruling

20 May 2025

Uncertainty over law hampering legal use of medical...

20 May 2025

Black security manager awarded £360k after decade of...

20 May 2025

Employers ‘worryingly’ ignorant about stress risk assessments

20 May 2025

UK and EU agree to collaborate on ‘youth...

19 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+