Pay deals remain in the ‘doldrums’, says XpertHR

Annual pay reviews remain subdued, according to the latest data released today by analysts at XpertHR. In the June 2015 quarter, the median pay award was worth 2%. This is unchanged since the three months to the end of April 2014. While pay freezes are much more of a minority pursuit than during the recession – accounting for just 7% of all wage deals in the current quarter – businesses are sticking firmly to only the most modest of increases for employees. Employers are also not straying far from the norm, with pay awards closely bunched around the 2% level. In fact, half of all pay awards are worth between 1.5% and 2.5%. Just one pay award in six (16%) is pitched at 3% or more.

By sector:

• In the private sector, the median pay award in both manufacturing/production and services stands at 2%.
• Meanwhile, in the public sector, settlements in the 12 months to the end of June 2015, at just 1.5%, lag the whole economy figure by half a percentage point.

XpertHR editor Sheila Attwood said:

‘The going rate for pay awards across the economy is firmly stuck at 2%. However, with the Chancellor announcing that pay awards in the public sector will be restricted to 1% for a further four years from 2016-17, the divide between the value of increases in the public and private sectors is likely to prevail for many years to come.’

‘Forecasts of low pay awards are borne out’ was published by XpertHR in July 2015. To find out more visit: www.xperthr.co.uk/editors-choice/forecasts-of-low-pay-awards-are-borne-out/155876/