New analysis reveals that the UK workforce is feeling the inflation squeeze, and it’s heavily impacting career decisions. As the cost-of-living crisis continues, 70 per cent of employers recognise their employees are struggling to manage their increasing costs, with most businesses agreeing that this could push employees to seek higher salaries elsewhere.
This is according to new research from specialist talent solutions consultancy Robert Half, which identifies the trends, issues and concerns of general managers, chief financial officers and chief information officers across the UK.
The research shows that securing a higher salary has increased in importance for most workers, and for employers this means holding on to valued employees without offering them a pay rise is challenging. To help retain valued employees, 33 per cent of businesses are extending remote working opportunities to help reduce travel costs, with 26 per cent permanently increasing wages.
Commenting on the findings, Matt Weston, senior managing director for the UK, Ireland, UAE and BeNeLux, said: “There is no denying the current economic landscape is challenging for both employers and employees.
“With inflation set to rise to 15% by early 2023 and cost of living set to increase even further, workers will start to feel the pinch, with some potentially having to kick their pay negotiation skills into action or potentially having to look elsewhere for increased salary or benefits.
“For employers, if possible, it’s important to keep up with salary packages that reflect current inflationary increases, simply, it will have an impact on their ability to attract and retain staff. Although for many, they may not feel in an ideal financial position to deliver the level of increases in pay required to keep up with demand.”
Almost 25 per cent of respondents said their organisations could not continue to increase salaries at the same pace due to business instability, and just over 20 per cent plan to pass salary increases onto customers via price increases.
Matt Weston added: “For most employers, especially those that may struggle to increase pay, now is the ideal time to look at enhancing flexibility or hybrid working incentives.”