Workers struggle to get pay rises in line with inflation

Employees are still struggling to negotiate pay rises which keep up with the rate of inflation, according to research.

Pay rises are now less than 1% behind inflation, the closest the two figures have been since wage rises first fell behind at the end of 2009, research from pay information firm XpertHR shows.

Median pay rises went up by 0.5% on the previous quarter to reach 2.5% in the three months to July, the study found. The headline figure increased because there were few public sector deals in the quarter, the group said.

July’s RPI inflation figure was 3.2% and headline pay awards were tracked at 0.7% behind.

One in eight of the 83 settlements analysed for the study were worth 4% or more, while one in six involved a pay freeze, the company’s research found.

XpertHR’s Sheila Attwood said: “Although private sector pay settlements are holding steady at a median of 2.5%, there is little evidence of upward pressure, with two-thirds of awards in the matched sample worth the same as, or less than, the award in the previous year.

“Even outside the public sector, we are still seeing one settlement in six resulting in a pay freeze.”

The difficulty workers are finding in securing a pay rise may not come as such a blow to older workers, a separate study suggested.

Older employees are more likely to be concerned with pride in their performance rather than pay rises and bonuses, according to a study of 1,100 adults by employment company Adecco.

Most of the people questioned said their performance at work was influenced by recognition from their boss.

More than half of older employees said self-fulfilment, teamwork and client service were important to them.

Adecco managing director Steven Kirkpatrick said: “The continued desire of older workers to go the extra mile at work shows a commitment to high standards that will stand anyone in good stead throughout their working life and suggests that the energy and passion that are so important remain in sound health as employees’ careers progress.”