Around half of all UK businesses will increase their spend on salaries this year, according to new research.
A survey from the Chartered Institute for Personnel and Development (CIPD) suggests that an average of just 15 per cent of employers expect to see a reduction in wage spend over the course of the year. This figure is higher in the public sector, which sees around 18 per cent expecting to cut their spend.
Following two years of wage cuts and freezes, moderate improvements in the economic situation seem to have encouraged employers to begin spending again. But there is still concern that the public and private sectors could see a long period of wage stagnation that would be difficult to shake.
The CIPD survey also looked at other employee recognition schemes. It found that the number of firms running recognition schemes had jumped to 41 per cent, up from 31 per cent last year. This includes schemes like employee of the month.
Employee retention is likely to be a priority for an increasing number of firms in the coming months, as the job market begins to ease and the cost of recruitment continues to rise.
