November 14, 2011
UK workers, struggling to make end’s meet in the current economic climate, will undergo an average pay rise of 3% in 2012, well below the projected 5.2% rate of inflation.
According to Mercer’s latest pay data, UK employees have better job security then their Western European neighbours, yet pay rises are expected to be far lower than those anticipated in other regions, such as Africa, the Middle East and Central and Eastern Europe.
“Salary increases in the UK are not keeping pace with the rising cost of living, and employees are finding it difficult,” said Mark Quinn, Principal at Mercer. “But the economic situation is still volatile so organisations are being cautious with their fixed costs, such as salaries.
“Committing to higher salary increases reduces a company’s flexibility and manoeuvrability if the economy does drop again. While restraint is painful for everyone in the short term, it is also prudent, and if it ensures the survival of the company it is in the longer term interests of employer and employee.”
A breakdown of Mercer’s figures shows that unsurprising, those currently in managerial roles can expect significantly higher pay rises than those in executive positions. Meanwhile, those in more junior positions will undergo a ‘levelling’ out’ of wages, whereby base pay increases are largely equal across all levels of employment.
