Have you had a pay rise this year?

It may be surprising to learn for many but this year UK wages have risen at a record annual pace. Between March and May of this year pay grew 7.3%. This might sound like excellent news but in fact it is a matter of concern for the Bank of England who are frantically trying to keep inflation down but failing miserably.

Currently inflation stands at 8.7% a whole 6.7% higher than Bank of England’s target and is only exacerbated by wage rises; the concern is that this increase in salaries will mean companies are forced to put up prices for their products even higher.

Companies are having to compete to attract new staff members due to a serious shortage of suitable, skilled candidates and a higher salary is the easiest way to get those much-needed applicants in. As an agency, we have noticed a significant increase in salaries which our clients are offering, particularly for Administrative roles which usually sat around the early £20k’s mark is now reaching more towards £30k per annum.

So, if you can’t offer higher salaries, how can you as a company compete? Since the pandemic more and more people are taking into consideration benefits and perks on offer when looking for a new job. Save time and money on outdated, booze fueled company socials, team building trips to Alton Towers and offer perks which people really want. Allowing people to work from home one day a week is a valuable perk to offer, if you can. Adding in extra holiday days or shutting the office during the Christmas period without expecting people to save holiday days to cover it is also another great way of attracting people’s attention. Let’s not forget too how attractive it is to offer a decent pension contribution or life/critical illness insurance, the future is scary, particularly for those who fear they will never reap the benefits of a state pension. Subsidising travel expenses or car parking is another smart move to entice in new employees, particularly if you’re inner-city with no parking available.