• Private sector salary expectations hit new high

    Almost half (49%) of employers considering a pay review over the course of the year are anticipating an increase to basic pay, according to new data from CIPD and Adecco’s Labour Market Outlook.

    However, 43% say it is unknown at this stage which way it will go.

    The findings of the Winter 2018-19 report [PDF] also revealed a widening gap in pay expectations between the private and public sectors.

    Among private sector employers, the expected median pay has risen above 2% to 2.5% for the first time since tracking began in 2012. But for the public sector, having climbed to a new high last quarter, pay rise expectations have slowed from 2% to just 1.1%.

    The proportion of hiring employers with hard-to-fill vacancies edged higher again for the fourth successive quarter — 71% report that at least some of their vacancies are proving hard-to-fill. The level was at 64% a year ago.

    Recruitment and retention continue to be pivotal challenges within a tight labour market, with 43% saying it has become tougher to fill vacancies over the past 12 months and 32% experiencing a similar problem in retaining staff.

    In response, a noticeably greater proportion of employers (56%) have raised starting salaries, up from 48% last quarter. Similarly, an increasing proportion (55%) of employers overall have used pay rises to help with retention.

    The Labour Market Outlook for the quarter is based on survey responses from 1,254 employers across the UK.

    AUTHOR

    Stuart O'Brien

    All stories by: Stuart O'Brien

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