- Employers still worried about losing staff due to lower wages
- The inflation rate will only just exceed 44% of the UK employers’ planned wage increases for their staff (between 3-4%).
- 76% of professionals are planning to search for a new job in the coming year
- Professionals not expecting bonuses: 45%
- Salary increases of up to 15% are available for professionals who change jobs.
- 60% of professionals are willing to take a job that pays less if the flexibility is there.
Over two thirds (69%) UK employers are worried about losing their employees due to low pay in this year.
Although 44% of UK employers plan to increase pay for their staff in this year, the actual rate of inflation is expected to be slightly higher than the current (2.5%).
Robert Walters has released new findings that suggest some UK employees, but not all, may be able to feel their salary going a bit further thanks to ONS figures indicating a recent decrease in the Consumer Price Index.
Experts have warned that the increase in April in employer national security contributions and increases in minimum wage are likely to further impact UK inflation in this year.
Chris Eldridge, CEO of Robert Walters UK & Ireland, says: “With growth being meager, there are no guarantees it will continue and professionals willing to leave a job for a promise of higher pay, worries remain.”
“However the unexpected fall in inflation combined with the 0.1% rise in GDP allows employers a little respite.”
Pay increases and their reasons
76% of professionals say they will be looking for a new job this year. Better pay is one of the main reasons.
The main reason that 44% of managers cite for giving pay increases this year is improving morale/retention. The next most common reason for pay rises is to reduce cost of living pressures.
not everyone celebrates
While it is true that professionals can expect to see an average increase in pay of 3-4%, this is currently only slightly above inflation. Over a quarter of employers (29%) have said they will only be able to offer pay increases of 2% or lower.
Recent Robert Walters Research revealed that 44% of UK white-collar workers believe they are ‘firmly on course’ to receive an annual bonus. However, 45% could be left with nothing.
Chris continues: “Employers are currently finding that their hands are firmly tied. Many employers will be juggling budget cuts with rising employee expectations by 2025.
It’s not surprising that some professionals will take a risk to find out if there are better opportunities elsewhere. They may do this if their expectations with their current employer are not being met.
Professionals look elsewhere for better compensation
These findings highlight a harsh reality: Employees risk not improving their financial status by staying in their current positions. In order to secure a higher income in the coming year, many people will need to switch jobs.
Robert Walters’ Salary Survey reveals on average a professional could secure a 15-20% pay increase in a new company for the same role. This can double for highly-sought-after roles or talent that is scarce.
One third of professionals said they would be willing to leave their current employer for an increase in salary of 10-15%.
But 46% said they would consider a move only if the pay increase was greater than 15%.
Compensation by companies
Over half of employers expect a drop in productivity or morale if compensation does not meet expectations.
Employers shouldn’t ignore their ability to compete with talent. Many employers have invested more in employee experience to counter concerns.
Professionals place increasing value on alternative compensation. 52% of professionals say they would consider a job based on the provision of funding for personal development or work-from-home subsidies (49%).
Work-life balance is also a priority. 60% of professionals are willing to stay in a job that pays less if they can have more flexibility. They will not switch jobs just for a higher salary.
Chris’ conclusion: “While the recent drop in the inflation rate may calm some nerves, many employers hold their breath as April approaches.
It is important to remember that while salary will always be an important part of any job, the flexibility of a position could be a key incentive for professionals.
On the other hand, the recent fall in inflation may make some professionals rethink if now is the time to move for a higher salary, better career options, or more flexibility.
Click here to view and download the Salary Survey Guide for 2025 by Robert Walters.
The original version of this article UK employers concerned about staff leaving due to low pay appeared first on Human Resources News.
