When the chips are down sector pay counts

The proportion of bargaining groups expecting a lower pay award increase has risen from 12.5% last year to 19.7% for the year ahead, according to IRS Employment Review’s annual pay prospects survey.

Personnel Today’s sister publication looked at the pay practices of 252 organisations. This covered 410 bargaining groups, including trade unions and staff representatives.

The findings of the research show that, in contrast to a year ago, they predict less pressure on pay awards with fewer employers expecting an increase during the next year.

Three per cent is still the favoured benchmark for pay increases. Respondents reported that more than two-fifths of employee groups were looking at a pay boost at this level.

The level of pay award made depends on a number of factors. The key determinants are the company’s ability to pay, inflation and the ‘going rate’ of pay settlements. However, respondents expect recruitment and retention factors and pay levels in competitor organisations to push pay settlement levels upwards.

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The findings also show that many organisations boost basic salary levels with cash bonuses, and that one in 10 now offer a flexible benefits programme.

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Source for all graphs: Personneltoday.com/ Data: IRS

For more information www.irsemploymentreview.com 020 8686 9141

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