After a year of balancing budgetary pressures with the rising cost of living, the dust may finally begin to settle in 2024. However, whilst inflation rates are falling, it is still much slower than anticipated. Some organisations are also finding themselves wrestling with the knock-on impact of wage compression triggered by increases to the national living wage. Whilst others are continuing to fight for talent in key technical or specialist areas where skills are scarce.
With the lingering economic uncertainty of the last few years and emerging governance designed to increase transparency, employee pay is set to remain in the spotlight. Our latest Q3 Insights Reports highlights the key pay trends for organisations in 2024. For many, it will be shifting the focus away from just the pay award itself, but how they can create more sustainable mechanisms to manage pay in the longer term – to help future-proof against further volatility in the market.
In our latest report:
- Inflation is falling, but not as quickly as predicted
- Significant increases in living wage and split awards focusing on the lowest paid are creating wage compression challenges
- Reviewing pay once a year isn’t enough in a fast-paced and evolving job market
