INTELLIGENT SECTION
FINANCE SALES & MARKETING HR SOLUTIONS EMPLOYEE ENGAGEMENT
Pay pressures : 53 % of UK employers see spike in wage growth
As we approach annual review season , over half ( 53 %) of UK employers say their wage costs have shot up in the last 12 months . That ’ s according to new research from SD Worx , a leading European HR solutions provider . Furthermore , with nearly half ( 44 %) citing upward pressure on wages as their most urgent payroll challenge , the research indicates pay pressure remains rife across UK businesses . That ’ s despite ONS data showing total UK wage growth fell to 4.9 % in the three months to August .
Meanwhile , employer confidence in communicating about money has also
THE RESEARCH HIGHLIGHTS THE VERY REAL IMPACT THAT FINANCIAL STRAIN IS HAVING ON BUSINESSES . taken a knock with businesses reporting challenges promoting financial wellbeing ( 32 %) and managing pay transparency across their organisations ( 42 %). Amidst a bumper year in payroll which has brought significant shifts in National Minimum Wage in both the current and former parliaments , the findings indicate the ongoing impact of the cost of living crisis on workers and businesses alike .
Shared financial pressure
The growing pressure on payroll costs underscores a larger issue : while businesses face increased financial strain to attract and retain talent , employees are facing their own cost of living realities .
Research , announced in September by SD Worx , highlights what ’ s in the pay packet is the number one driver of dissatisfaction amongst employees . It showed that less than half of the workforce ( 47 %) is satisfied with pay , while only 49 % feel that their salary is competitive in the labour market and just 52 % feel they are paid fairly compared with colleagues working at a similar level .
Overall , despite being united in citing financial pressures as their biggest concern , a serious disconnect remains between what workers need to shoulder living costs and what pay and benefits packages employers can realistically deliver .
The communications gap
Gaps in effective communications around pay packages is leading to dissatisfaction and a lack of engagement in the workforce . While some employers are tackling the issue through one-on-one conversations ( 32 %) or through official internal communications ( 22 %), these efforts can have limited reach and run the risk of leaving a sizeable portion of employees out of the loop . As a result , employees feel underwhelmed with just 50 % saying they receive sufficient communication about their pay and only 25 % saying they have the autonomy to personalise their rewards packages to individual interests and needs .
However , it seems that businesses are actively investing in better communications with employees to tackle the problem and build wider understanding of the value of pay and rewards packages . Twothirds ( 65.7 %) of businesses are investing more time and budget to their rewards communications at least in the short-term , while 38 % of that figure intend to make it an investment priority in the long term .
Laura Miller , UK People Country Leader at SD Worx , said : “ The research highlights the very real impact that financial strain is having on businesses . However , the strain is shared by employees who too often feel poorly informed , ignored or just not in control of their own pay and benefits package .” x
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