'Commuter crunch' strikes as soaring travel costs outstrip pay rises
Many commuters face a miserable journey back to work after the festive holidays, as the latest Hay Group PayNet UK Salary Tracker reveals that hardest-hit workers could spend on average 8% and in some cases up to a third of pre-tax salary on travel costs in 2013.
Average train fare rises of 4.2% will lift a typical annual season ticket to £2,191, or 8% of the median UK salary of £26,082. Meanwhile, those who drive to work will burn on average 5% of pay on petrol, £1,443 annually.
However, it’s not all bleak news for UK workers. According to global management consultancy Hay Group, towards the end of last year pay increased by 3.5%, outstripping inflation and boosting real pay for the first time since 2009.
The firm's PayNet UK Salary Tracker analyses pay and salary movements across five different employee levels in over 700 organisations, representing over one million employees.
A final word
“As the cost of commuting continues to rise faster than wages and inflation, employees are becoming increasingly concerned about the significant proportion of their salaries they lose to travel. With real pay finally returning to positive growth and the jobs market beginning to pick up, organisations must take action to ensure that their top talent isn’t seduced by better offers elsewhere. Therefore, employers should benchmark pay and benefits against their peers and ensure they’re paying their employees fairly and competitively.
“But it isn’t all about pay. There are affordable measures that organisations can take to help employees with the mounting 'commuter crunch', including flexible working, the opportunity to work from home or season ticket loans. In addition, employers who are concerned about losing key talent should ensure they measure employee engagement effectively and also consider offering more development opportunities such as training or promotion.” - Adam Burden, consultant at Hay Group.
Want to know more?
Hay Group’s PayNet UK Salary Tracker is a comprehensive quarterly analysis of salary against inflation, as well as other economic indicators. For more information, visit www.haygroup.com/uk/salarytracker.
The PayNet Salary Tracker provides salary movements across five employee levels. All salary figures are before tax.
Hay Group is a “global consulting firm that works with leaders to turn strategies into reality”. With 85 offices in 49 countries, it works with over 7,000 clients across the world. For more information visit www.atrium.haygroup.com.