Changing jobs is best way to get a pay rise in the UK Changing jobs is best way to get a pay rise in the UK

Changing jobs is best way to get a pay rise in the UK
16 Aug 2018

UK workers are struggling to obtain pay rises that beat inflation - unless they change jobs, new research has revealed.

Only half of employers intend to grant staff pay rises of more than 2% over the coming year, according to a survey from the British Chambers of Commerce (BCC) and online recruitment company Indeed.

The poll of over 1,000 businesses of all sizes and sectors revealed that 6% plan to increase pay by more than 5%; 32% by 2%-5%; 12% in line with consumer price inflation, and 18% by 1-2%. A further 2% expect to cut salaries.

Just over a third also indicated that they plan to compensate for increases in the National Living Wage over the next three years by raising the prices of products and services, while nearly a quarter intend to take a hit on their margins and profitability. About 16% will increase investment in automation, and the same number will recruit people on flexible contracts.

But a second study from the Resolution Foundation think tank revealed that while workers who remain in their jobs can expect an average pay rise of 2.5%, moving jobs could net them a wage increase of an average 11%.

Stephen Clarke, senior economic analyst at the Resolution Foundation, told the Guardian that “evidence on the key issue of pay pressure is decidedly mixed”.

For people moving jobs, pay growth has hit 10% for the first time in over a decade. But for the vast majority of workers who stayed put in the last year, “pay is still struggling along at just 2.5% - barely higher than inflation", he added.

 Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

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UK workers are struggling to obtain pay rises that beat inflation - unless they change jobs, new research has revealed.

Only half of employers intend to grant staff pay rises of more than 2% over the coming year, according to a survey from the British Chambers of Commerce (BCC) and online recruitment company Indeed.

The poll of over 1,000 businesses of all sizes and sectors revealed that 6% plan to increase pay by more than 5%; 32% by 2%-5%; 12% in line with consumer price inflation, and 18% by 1-2%. A further 2% expect to cut salaries.

Just over a third also indicated that they plan to compensate for increases in the National Living Wage over the next three years by raising the prices of products and services, while nearly a quarter intend to take a hit on their margins and profitability. About 16% will increase investment in automation, and the same number will recruit people on flexible contracts.

But a second study from the Resolution Foundation think tank revealed that while workers who remain in their jobs can expect an average pay rise of 2.5%, moving jobs could net them a wage increase of an average 11%.

Stephen Clarke, senior economic analyst at the Resolution Foundation, told the Guardian that “evidence on the key issue of pay pressure is decidedly mixed”.

For people moving jobs, pay growth has hit 10% for the first time in over a decade. But for the vast majority of workers who stayed put in the last year, “pay is still struggling along at just 2.5% - barely higher than inflation", he added.

 Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

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Minimum wage rises expected to spur inflation in New Zealand

 

 

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