It seems as though things may be finally starting to look a little brighter for the UK economy, albeit in a small way. Inflation fell in 2012 from the record highs we experienced in 2011. Rates of unemployment continued to fall throughout 2012 and overall, the UK's economy grew marginally (British Chamber of Commerce). The predictions for 2013 and early 2014 are a modest growth in GDP, so a more encouraging picture for British businesses is emerging.
In terms of pay, awards have been increasing slowly since 2009 (ONS) and there's no reason for this trend not to continue throughout this year. The big question is whether pay increases will start to break through the inflation barrier. And the big challenge for HR is however promising the future looks, how do you attract and retain employees today when your pay and bonus pot continues to be squeezed?
