UK pay compression 2026 research

Pay compression is a growing issue that many UK businesses are facing.

Every year the wage floor rises, and employers ask the same question: can we afford it?

In a bid to better understand the current state of pay compression in the UK, we surveyed 500 HR leaders and 500 junior employees with 2-5 years’ experience.

Our survey queried respondents on a range of topics, from perceptions and challenges to the main drivers of pay compression.

Using this research, we’ve created a guide covering:

  • Growing industry concerns around losing skilled workers
  • The impact of pay compression
  • Differing perceptions around pay compression
  • The drivers of pay compression
  • New pay transparency rules  
  • Advice for tackling pay compression
  • Retaining and motivating employees when you can’t pay more
  • Looking at the total reward package
  • The role of payroll and data
Guide downpage UK pay compression 2026 research | UK pay compression 2026 research  

Retaining and motivating employees when budgets won’t stretch  

In conjunction with this research, we assembled a panel of HR experts from across IRIS to unpack the true business implications and uncover what businesses can do now. 

  • Lizzy Barry, HR Director 
  • Dan Grace, Director of International HR Consulting  
  • Louise Anderson, Senior Learning & Development Advisor  

Fill in the form and get your free guide. 

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