Waiting for a Pay Rise? You May Be Waiting Until 2020
Research by the Chartered Institute of Professional Development found employees are unlikely to see a boost in wages until the turn of the decade.
The CIPD’s research found that “low inflation, expanding labour supply, and the lack of productivity growth working in combination to reduce the economic pressure for employers to pay their staff more.”
Interestingly, recent legislative changes are to blame, according to employers. They say that new legislation such as automatic enrolment and the pension reforms, the National Living Wage and the Apprenticeship Levies are having a huge impact on their bottom line.
What the CIPD are Saying
Mark Beatson, CIPD Chief Economist said: “These findings show that employers remain confident about short-term job prospects, with many more expecting to take on new staff than expecting to shed staff as the UK ‘jobs miracle’ continues. For now, there’s no sign of the economy running out of jobs, or out of people to fill those jobs. However, the UK is now in its eighth year of productivity ‘go-slow’ which continues to limit the scope for employers to pay more and recruitment and retention problems have so far proved manageable without across-the-board pay rises. This survey provides no indication of this situation changing any time soon.”
What Will the Future Bring?
The CIPD have concerns that smaller businesses in the UK are lacking the knowledge, experience and training required to properly respond to changes in legislation.
We’ve spoken in-depth about the earlier businesses prepare for changes in legislation, the better chance they have of compliance. We recently published a free guide titled, ‘Top 5 payroll issues of 2016’ where we looked at issues such as the Workplace Pensions Reform, the National Living Wage and more. The guide looks at what legislation we predict will affect businesses during 2016 and beyond, and also how we believe businesses can prepare.
Download your free using the buttons at the top and bottom of this blog, and get ahead of the legislation.