14/03/2022
There's a lot of talk right now about the cost of living and the impact it may have on salary increases this year. The reality is that right now, companies would need to award around 7% pay rise to staff just for them to effectively standstill - thanks mainly to energy, fuel and food price increases. In recent years, we would have been doing a 'whoop whoop' if we got 7% but without it right now, we are all effectively taking a pay cut. How many employers can afford to award such a big increase - bigger corporates are budgeting for at least 10% as the cost of living continues to rise rapidly. When will it stop? What about the long term impact on the wage bill - is it sustainable? A buoyant recruitment market also suggests employers must keep up if they don't want to start losing key staff to the opportunity to earn more elsewhere. It's a candidate's market right now. Employers Beware and start planning now!