A recent survey conducted by XpertHR Pay and Benefits predicts that 7 pay awards out of 10 next year are likely to be worth between 2% and 3%. The survey goes on to reveal an analysis of the current pay settlements landscape, concluding that in the 3 months leading upto the end of September 2012, the whole economy median pay award figure fell from 2.4% (previous quarter) to 2%. The falling figure was not only caused by continual freezes and low pay awards in the public sector, but also by a weakness in private sector awards – the median pay award in the private sector fell from 2.5% to 2.3%.
Other useful findings from the survey include:
- The median pay increase in 2013 is forecast to be 2.5%.
- Pay awards are expected to be tightly bunched around the median, with 7/10 of all pay awards in 2013 likely to be worth between 2% and 3%.
- A higher increase – 3% is expected for manufacturing and production firms, compared to companies in the services sector – at 2.4%.
- Pay freezes are predicted to account for less than 10% of all pay awards.
XpertHR Pay and Benefits editor Sheila Attwood said:
“Our latest data shows a small dip in the level of pay awards, while the predicted 2.5% pay increase in the year ahead demonstrates continued caution on behalf of employers, who will again primarily assess company performance and their ability to pay when setting their pay award budget. Employers are also looking at how they can attract and retain employees in the current climate – from keeping an eye on competitors’ pay rates to being creative with their reward budget.
Be sure to read the full report for further 2013 pay award findings.