42% expect to raise basic pay


Some 42% of respondents expect their organisation to raise basic pay, according to research by the Chartered Institute of Personnel and Development (CIPD).

Its latest Labour market outlook survey, which questioned more than 1,000 employers, found that this expectation has fallen from 48% in the CIPD’s spring 2014 report.

The research also found that there has been a rise in the number of employers that plan to freeze pay, up to 10% from 8% in the CIPD’s spring 2014 report.

Nearly half (47%) of respondents are uncertain about the outcome of their next pay review, while 38% have conducted a pay review since the start of 2014.

More than half (57%) of respondents have not conducted a pay review this year.

Only 2% of respondents said that starting salaries will increase in their organisation.

Mark Beatson (pictured), chief economist at the CIPD, said: ”Recruitment intentions are high; small and medium employers provide much of the fuel and we are seeing this all over the UK, with employers in the Midlands and the North having the highest short-term employment optimism.

“This is great news for job seekers, but we urgently need to see jobs growth accompanied by productivity growth for workers to feel the benefits of the recovery too. 

“This would help place it on a more balanced and sustainable footing, and create the economic headroom for real wage increases.”