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Low pay rises predicted for 2021

Wage growth is expected to remain low in the year 2021 at 1%, according to the latest research from XpertHR.

The research statistics and analysis firm completed its survey which outlined the forecast pay awards for the year running to 31 August 2021.

The survey was based on 184 private sector organisations in which XpertHR conducted interviews and research during the months of August and September.

The findings of the survey showed many employee groups are expected to receive a lower pay award in the coming year, or no increase at all.

The median pay growth for 2021 is expected to be the lowest in three years, which XpertHR said is “not surprising” given the current climate.

Pay awards in the public sector fell to 2.2% over the past 12 months, down from 2.5% last year.

The research revealed that a pay freeze is the most “commonly cited outcome,” accounting for 44.8% of employee groups.

Company performances, the ability/inability to raise prices of products/services, and uncertainty due to Brexit are said to be among the biggest downward pressures on pay rises for employers.

Sheila Attwood, pay and benefits editor for XpertHR, said: “The devastating impact of the coronavirus pandemic on company finances has seen the value of pay rises fall to the floor over the past few months.

“Many employers are not optimistic that they will be in a position to award a pay rise in 2021, with a pay freeze easily the most expected outcome of any pay review next year.”

 

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