Those in the private sector can almost certainly expect another rise of 2% in the coming yearAs an employee working for a small or large company, there is every chance that you have felt underpaid and, potentially, undervalued at some point during your career.
If you are tired of the seemingly minute rises that come your way (which are said to reflect the rise in the cost of living, but still don’t seem to stretch that far), then you may be excited to discover that more satisfying pay rises could well be on the horizon for some sectors.
Looking forward to 2018
Looking ahead to next year, you could also be looking forward to a well-deserved increase in pay. According to forecasts into 2017-2018, almost 80% of employers are hoping to increase their workforce’s pay over the coming months, with some possibly going over the 2% mark.
While a big majority will still only be expecting to offer rises of the same level as the year just gone, around 20% will be lucky enough to receive a higher reward.
Those in the private sector, however, can almost certainly expect another rise of 2% in the coming year.
While you may have been hoping for more of a jump, it is still reassuring to know that only just over 5% of employee groups will have their pay frozen, which has been significantly higher in previous years. Anything is better than nothing!
Why are the margins staying the same year on year?
Many disgruntled employees will be wondering why their company can’t afford to pay them more, especially if they can see the company making money and doing well.
While all may seem like it is onwards and upwards, businesses still have the strain of many other, often hidden, factors to consider, such as increasing pension costs and the effect that more outgoings would have on reward budgets.
That said, with retention factors to think about (for example, some employees may flee to competitors if they are willing to offer them more money), employees may have to throw caution to the wind and give in to the pressures being put on them by their staff.
Do you as an employer need to do more to get yourself heard?
The fact is that company directors will always choose to be cautious, rather than being generous with their staff salaries. As such, unless there is increased noise and pressure from employees asking for higher rewards, then they will continue to offer gradual rises, at times even the bare minimum, until a time when there are fewer risks to worry about.
Until then, it is up to you to get your voice heard!
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