With a slow growing economy, few commentators expect a sudden change in pay growth for the foreseeable future. This is confirmed in XpertHR's survey of pay award forecasts, with the expected value of pay awards for the coming year remaining subdued.
With Government policy restricting the level of pay awards in the public sector in 2015/16 to an average of up to 1%, settlements across the sector have remained subdued and the Conservative Government has made clear its determination to continue this approach for the coming four years.
Although many employees are finally seeing real-terms growth in their pay, the XpertHR survey of pay award forecasts for 2015/2016 finds that employers in the private sector are not expecting the value of pay awards over the coming year to change from the level seen for almost three years.
The graduate labour market is showing signs of cooling, XpertHR research finds. UK employers have frozen graduate starting salaries for a seventh consecutive year and graduate recruitment activity is slowing down.
Although many of the staff groups under the remit of the public-sector pay review bodies have received a pay award in 2015/16, for salaried staff in the NHS in England, Wales and Northern Ireland the review bodies played no part in the decision.
Pay rises are on the cards in nine organisations in 10 over the next 12 months but, at an expected median rate of 2%, employees are likely to be underwhelmed by the level of the awards, according to our latest research.
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