For business owners, staying informed on the latest payroll trends is crucial to ensure competitiveness in the market and retain skilled employees.
Recent research by XpertHR reveals that 90 per cent of UK employees can anticipate a pay increase in 2023, with 62 per cent of these raises expected to be larger than those of 2022.
Despite this, 98 per cent of employers reported increased pressure on their pay awards budgets.
The most frequent causes for this were:
- Inflation and the cost of living
- Pay levels within the same industry
- The ongoing skills shortage
Despite these obstacles, three per cent of employees may face a pay freeze in the upcoming year, while the outcome for the remaining seven per cent is uncertain, as reported by XpertHR.
How can you navigate this?
You need to ensure that your business has the necessary budget allocation to keep up with competitive pay increases in the market.
The increase in the National Living Wage, to £10.42, must also be complied with.
This came into force on 1 April 2023 so you must pay your employees the increased rate, or the increased National Minimum Wage relevant to their age.
Regularly review your business’s financial position and identify any scope to reallocate your budget accordingly and remain competitive.
Need advice on budgeting and your business plan? Contact our team today.
