With inflation falling, will pay awards maintain the 32-year high we recorded in 2023? We explore pay forecasts data to provide insight into where pay awards are expected to be for 2024 and the factors that are likely to have an effect on these decisions.
With the first settlements of 2024 having come into effect, we are beginning to see how organisations are responding following the 2023 unprecedented pay award levels.
In what has been an unprecedented year for settlements, pay awards have not slowed down. For the eighth time in 2023, the median pay settlement value hits 6% and since autumn, public-sector deals have continued to surpass the private sector.
As the year draws to a close, so does pay settlement activity. The median basic pay award in the three months to the end of October edges back up to 6%, driven by public-sector pay deals.
Following a year where pay settlements reached the highest value in over 30 years, preliminary forecast data from XpertHR explores the shift in pay awards expected in the coming 12 months.
New analysis by XpertHR has found that public-sector pay deals stand at the highest they have been in over 30 years, following a period of high inflation and pressure from trade unions.
With sticky inflation, economic uncertainty and fierce competition for talent, there is great pressure on organisations and their reward strategies. Our latest survey looks at how employers are planning to compensate their workforce over the coming year, their priorities and key challenges.
Pay awards across the manufacturing-and-production sector remained in line with the whole economy, but some industries have seen higher settlements than others.