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Pay settlements

No signs of growth in pay awards levels, says XpertHR

by Jo Faragher 24 Aug 2017
by Jo Faragher 24 Aug 2017

Pay awards in the three months to the end of July 2017 were worth 2%, according to the latest data from XpertHR.

Although the spread of awards has widened, with the middle half of deals worth between 1% and 2.6%, there are no signs of pay award levels rising.

Pay resources

Stability in pay growth continues

Survey analysis: Pay and benefits

Average pay awards have been worth 2% over consecutive rolling quarters since the three months to the end of December 2016.

They also remain stubbornly below retail prices index (RPI) inflation, which stood at 3.6% in July 2017, and 0.6 percentage points below consumer prices index (CPI) inflation, which is 2.6%.

According to XpertHR, only a quarter of basic awards are worth more than CPI inflation, while only one award provides an increase when compared with RPI inflation.

More than seven in 10 pay settlements recorded on the XpertHR pay databank are effective in the first four months of each year, so summer is traditionally a quiet time for pay awards.

Across the sample analysed, 2% was the most common pay award, given to 29.8% of employee groups.

Half of all pay awards are worth between 1% and 2.6%. The highest awards were recorded in the manufacturing and production sectors.

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More than four in 10 (45.2%) pay awards were higher than employees received a year ago, while 16.7% were lower.

Commenting on the findings, XpertHR’s pay and benefits editor Sheila Attwood said: “While most employers are awarding pay rises, the increases are subdued and falling behind inflation.”

Jo Faragher

Jo Faragher has been an employment and business journalist for 20 years. She regularly contributes to Personnel Today and writes features for a number of national business and membership magazines. Jo is also the author of 'Good Work, Great Technology', published in 2022 by Clink Street Publishing, charting the relationship between effective workplace technology and productive and happy employees. She won the Willis Towers Watson HR journalist of the year award in 2015 and has been highly commended twice.

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