With the economy making a faltering return to growth, whole-economy pay awards also appear to be showing tentative signs of recovery, according to latest benchmarking research from IRS for XpertHR. The headline pay award stood at 1% over the three months to 28 February 2010. But closer analysis reveals a more complex picture: pay freezes remain commonplace; and continuing economic and political uncertainty at a busy time for pay setting means that the outlook for settlements is unclear.
- The 1% median pay award over the three months to 28 February 2010 is unchanged from the figure for the previous rolling quarter, which has been revised up by one percentage point, from nil to 1% as details of more settlements have been collected by IRS researchers.
- More than one-third of pay awards resulted in a pay freeze.
- The interquartile range for pay awards stands between nil and 2%.
- More than two-thirds of pay deals are worth less than a year ago.
Looking ahead, IRS pay specialist Rachel Sharp comments that prospects for pay awards over the remainder of the year are anything but clear. Sharp says:
There are both upward and downward pressures on pay, and how the battle between them plays out depends on many factors that are still subject to ongoing uncertainty. Not least of these is the fear that economic growth is weak and the UK may still see a double-dip recession.
If your organisation recently carried out its annual pay review, and if it has now been settled, please
get in touch so that we can add your organisation's pay award to the IRS database.
