February 2012 Archives

Local government employers have announced that council staff will have their pay frozen for an "unprecedented" third year in a row. The pay freeze will affect 1.6 million local government employees in England, Wales and Northern Ireland from April 2012. The decision comes at a time when pay awards monitored by XpertHR are running at their highest level since December 2008.

The Local Government Association said: "A combination of rising costs and shrinking local
government funding means councils were left with little choice. Increasing pay would
mean more job losses and cuts to the services people need."

The trade union side of the National Joint Council for Local Government Services had put in a claim for a "substantial increase in pay" and the unions responded angrily to the employers' refusal to make a pay offer. They have called for the matter be referred to Acas for arbitration. Heather Wakefield, Unison head of local government, described the decision as a "disgrace". She said: "The employers must think again, and at the very least come through with the £250 minimum increase for the lowest paid."

The GMB said the decision to impose a pay freeze for a third successive year had come as a shock and was "totally unacceptable". National secretary Brian Strutton said the GMB would consult its members over industrial action if the employers refused to go to arbitration, while Unite national officer Peter Allenson said the union would "fully support its members in any action they are prepared to take for pay justice".
Rachel Sharp  | | Comments (0) | TrackBacks (0)
Employees are enjoying the highest pay rises seen since December 2008, according to the latest pay settlement data from XpertHR [£].

The median pay rise in the three months to the end of January 2012 stands at 2.5%, up from 2.3% in the same period a year ago. This is unchanged on the figure for the previous rolling quarter, confirming that the upward trend in pay settlement figures first seen in December 2011 has been sustained.


Rachel Sharp  | | Comments (0) | TrackBacks (0)
Frozen!The national minimum wage adult rate could be increased with effect from 1 October 2012, but the rates paid to younger workers are "most likely to be frozen" in 2012/2013. This is according to the Daily Telegraph.

The CIPD last year called for the national minimum wage rates paid to younger workers to be frozen in 2012/2013.

National minimum wage rates for younger workers 'most likely to be frozen' in 2012/2013, says Telegraph
Given the current backdrop of ongoing economic uncertainty, rising unemployment and falling inflation, news of the annual increase (or otherwise) to the national minimum wage for 2012/2013 (due to come into effect on Monday 1 October 2012) will be particularly closely watched.

The Telegraph says:
The separate [national] minimum wage rates for young people are the most likely to be frozen to make it easier for firms to offer jobs to one million under-25s who are out of work.
The national minimum wage rate for workers aged 16-17 inclusive is currently set at £3.68 per hour, while the national minimum wage development rate (paid to workers aged 18 to 20 inclusive) is £4.98 per hour and the apprentice rate is £2.60 per hour. See XpertHR's statutory rates pages for full details of the current national minimum wage rates (XpertHR subscription required).

BIS and CIPD favour freezing national minimum wage rates for younger workers
Both the BIS and the CIPD favour freezing national minimum wage rates for younger workers in 2012/2013.

The Telegraph reports that "in its own evidence to the [Low Pay Commission (LPC)], BIS warned that increases in the minimum wage made employers more reluctant to hire." It quotes the BIS submission as follows:
There are [...]  reasons to be cautious and moderate in recommending NMW (National Minimum Wage) rates for young people. Evidence suggests that labour market outcomes of younger workers are more at risk from the uprating of the NMW.
In its submission to the LPC late last year, the CIPD called on the LPC to recommend that national minimum wage rates paid to younger workers be frozen in 2012/2013.

In a Twitter discussion with me and @neilmorrison on Monday 3 October 2011, the CIPD stated that it believes that the "national minimum wage is harming youth employment in some sectors," and should therefore be frozen next year (although it notes that this is "a finely balanced decision").

The CIPD also said (again via Twitter): "we've called for a freeze in past. We support NMW, but with rising unmplyment, temp freeze may be for greater good." The CIPD believes that such a national minimum wage freeze for 2012/2013 should be confined to younger workers. It says that the "adult rate appears to have less overall impact but there are variations by region & sector. So policy focus wld be on the yth rates."

The CIPD argues that it would like to see national minimum wage rates for younger workers frozen until the economy recovers: "The freeze could be absolute or relative, but would last until we see more robust growth."

Access the CIPD's full submission to the LPC here.
Michael Carty  | | Comments (0) | TrackBacks (0)

According to the latest XpertHR research, more than half of organisations use market-linked pay. What we don't know, however, is why organisations use market-linked pay, for what purpose, and how they go about it.

In order to answer these questions, and more, XpertHR is conducting a survey of market-linked pay.

We would be very grateful if you share your organisation's experiences in our confidential survey.

In return for completing the survey, we will provide you with a free copy of the research report.

The survey closes on Friday 2 March.

Sheila Attwood  | | Comments (0) | TrackBacks (0)
Pay rises for general managers and secretarial staff averaged just 1.8% over the past year, data from XpertHR's General Management and Administration Salary Survey shows.

The findings are based on pay data for 15,300 employees supplied by 232 employers. Around 10,000 of those whose pay data is included in the survey work in secretarial and administrative roles, but the survey also reaches higher up the managerial ladder to board directors and chief executives.
Mark Crail  | | Comments (0) | TrackBacks (0)

Basic salaries for computer staff have increased by their highest level since May 2009, according to XpertHR's December 2011 Computer Staff Salary Survey. The survey reveals that salaries among a matched sample of individuals (those in the same job at the same level as a year ago) rose by 2.8%. This is higher than the 2.2% recorded in the November 2010 survey, and higher than the median 2.1% pay award across the economy in the year to October 2011 recorded by XpertHR. Survey respondents are predicting higher awards over 2012, with a predicted 3% pay increase at their next review.

The survey also suggests that it was a good year for bonus payments in the sector, with basic pay plus bonus increasing by 3.8% over the year. The value of bonus payments ranged from 5.1% of basic salary for professional level 1 staff, to 65.9% for IT directors. More than half the individuals covered by the survey received a bonus.

The report enables users to drill down into the data by job function, industry, location, company size and turnover. 

The survey is based on salary information for 53,750 IT employees in 206 organisations.

Go to the XpertHR Salary Surveys home page.

Sheila Attwood  | | Comments (0) | TrackBacks (0)

Early indications from data collected by XpertHR has revealed that pay settlement levels so far in 2012 are well above the levels seen in 2011 and the preceeding years of the recession.

Is this due to employers feeling more confident about the economy, employee pressure, or making up for years of low pay rises? And will it continue?

To find out, XpertHR are launching a confidential pay forecasting survey which will establish likely pay trends over the coming year. We would greatly appreciate your assistance with our research by completing our questionnaire.

The survey is entirely confidential, and all respondents will receive a copy of the report as soon as it is published at the end of March.

Click here to take part.

Sheila Attwood  | | Comments (0) | TrackBacks (0)
Juicy Salif - 78365XpertHR's February 2012 economic commentary examines current threats to UK economic recovery, including the ongoing income squeeze.

One month into 2012, and the UK economy finds itself back in negative territory.

Economic uncertainty is widespread, which in turn makes recovery ever more difficult.

"Uncertainty is [a] significant risk," according to a survey of CFOs by Deloitte. It finds that "56% of CFOs rate the level of uncertainty facing their business as being 'high' or 'very high.' As one respondent put it, 'Everyone is waiting for something very bad to happen.'" Respondents to the Deloitte survey also see a 54% chance of a double-dip recession for the UK.

The Guardian's Larry Elliott identifies a "triple whammy" of factors making UK economic recovery problematic: "falling real incomes, austerity and the crisis in the eurozone"

XpertHR's economic commentary for February 2012 looks in detail at the impact of each of these factors, and rounds up the latest data on key economic indicators of relevance to HR professionals and reward practitioners.
Michael Carty  | | Comments (0) | TrackBacks (0)

We present the February 2012 XpertHR Salary Surveys pay bargaining statistics table, which provides the latest monthly summary of key data for pay specialists.

Michael Carty  | | Comments (0) | TrackBacks (0)

XpertHR Pay Services

XpertHR also provides services specifically for pay specialists:

Match your company's pay and benefits against market rates, using the latest payroll data from participating employers.

Benchmark your company's employment practices, policies and performance.

Video Tutorials



HR calendar






Connect with us


Subscribe to feed   Follow Pay Intelligence on Twitter   Subscribe to Pay Intelligence by Email


Archives




Recent Comments

  • Rev Paul CA : While the Living Wage Foundation includes organisations using workfare their read more
  • Anonymous: The minimum wage is slowly becoming the national wage.Employers are read more
  • Anonymous: Younger rates are frozen. That is stupid. Government want younger read more
  • Michael Carty: Thank you for the comment regarding the national minimum wage. read more
  • Anonymous: I find it wrong that younger rates are frozen. These read more
  • @Shottty: Informative post, like it. If the minimum wage freeze on read more
  • Al Reiling: Politicians can't work to fix this economy so they find read more
  • peter lewis: Is anyone else sick of the down talk we get read more
  • steven threadwell: I would love to see our goverment and polititions live read more
  • Michael Carty: Thank you for the query regarding the national minimum wage. read more