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
    • OHW 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
    • OHW 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+

Economics, government & businessLatest NewsPay & benefitsPay settlements

Vast majority of pay awards lag behind inflation

by Laura Chamberlain 16 Dec 2011
by Laura Chamberlain 16 Dec 2011

Pay awards are continuing to lag well below inflation, with just 2% of settlements keeping up with the retail prices index (RPI) in 2011, research has found.

According to XpertHR’s latest pay trends report, the median basic pay award remained at 2% for the three months to the end of November. It has been stuck at this level for eight consecutive quarters.

Despite a predicted fall in RPI from an average of 5.3% in 2011 to 3.5% in 2012, the report says that pay settlements are also likely to stay below inflation in the new year.

Sheila Attwood, XpertHR’s pay and benefits editor, commented: “Although inflation is set to fall further in the new year, it will remain at a level that is unattainable for most employers to match in pay packets. We expect to see improving pay settlement levels in 2012, but pay rises will continue to lag behind inflation.”

A separate piece of research also published today by XpertHR revealed that bonus payments in 2011 were worth a median 6% of earnings, 4% lower than that recorded in similar research in 2008, prior to the recession.

The survey found that only half of organisations operated a cap on the size of bonus payments, which ranged from 10% to 150% of salary, with open-ended bonuses more prevalent in financial services and retail companies.

However, the report, based on 91 bonus schemes, stated that the size of payments was expected to fall in 2012 to a median of 5% of earnings.

Employers reported that the top problem with their bonus schemes was employee disappointment with the size of payments, followed by a lack of employee understanding of the scheme.

Attwood added: “Bonus payments made to many junior employees are almost universally far lower than those received by employees occupying the top tiers of management. Nevertheless, they can represent a significant, if variable, element of total remuneration.”

Avatar
Laura Chamberlain

previous post
Doctor awarded £4.5 million in sex and race discrimination case
next post
Health and safety changes welcomed by industry bodies

You may also like

Four-day week: what are the legal considerations for...

28 Jun 2022

Gender pay gap ‘won’t close until 2151’

27 Jun 2022

Third of employees living ‘payday to payday’

27 Jun 2022

PwC to award inflation-busting pay increase

27 Jun 2022

Barristers walk out in protest over fees

27 Jun 2022

Roe v Wade: US employers rally to support...

27 Jun 2022

Graduate salaries rise sharply as search for talent...

27 Jun 2022

Don’t be gloomy over social mobility in the...

24 Jun 2022

Christian awarded £22k following dismissal over religious necklace

24 Jun 2022

Movers and shakers June 2022: Lloyds, Indeed, Zoom...

24 Jun 2022
  • NSPCC revamps its learning strategy with child wellbeing at its heart PROMOTED | The NSPCC’s mission is to prevent abuse and neglect...Read more
  • Diversity versus inclusion: Why the difference matters PROMOTED | It’s possible for an environment to be diverse, but not inclusive...Read more
  • Five steps for organisations across the globe to become more skills-driven PROMOTED | The shift in the world of work has been felt across the globe...Read more
  • The future of workforce development PROMOTED | Northumbria University and partners share insight...Read more
  • Strathclyde Business School expands its Degree Apprenticeship offer in England PROMOTED | The University of Strathclyde is expanding its programmes...Read more
  • The Search for Talent: Six Major Employer Pitfalls PROMOTED | The Great Resignation continues unabated...Read more
  • Navigating the widening “Skills Confidence Gap” in 2022, and beyond PROMOTED | Cornerstone OnDemand conducted a global study...Read more
  • Apprenticeships are the solution to your recruitment problems PROMOTED | Apprenticeships have the pulling power...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 2022

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2022 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
    • OHW 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+