The Chartered Institute of Personnel and Development (CIPD) has published its latest Labour Market Outlook report (this link takes you to their report), with some interesting results.
Their quarterly survey of over two thousand employers found that the median expected pay increase across all sectors was also three percent, down from four percent last quarter.
The private sector expects to mirror this by increasing salaries by only three percent over the next 12 months, significantly lower than recent increases. This is surprising when compared to other recent data, but hopefully it bears well for inflation and interest rates. We could all do with some more good news on those fronts!
The survey was carried out at around the time of the general election and at that point they found that the public sector was expecting to increase pay levels by an average of 2.5 percent. Clearly this figure will have now increased significantly following the new government’s recent announcements regarding public sector pay increases, based on the findings of pay review boards.
It will be interesting to see what impact, if any, those public sector increases have on the private sector’s plans in next quarter’s survey.
The other major finding of the CIPD report was that ‘hard to fill’ vacancies continue to be an issue for all areas of the market, but especially so in the public sector.
HR professionals are so lucky to have such an excellent professional body. The CIPD provides us with key information, research, support and training. Their paid for ‘HR Inform’ subscription service is also brilliant. This, along with guidance from ACAS is where we at 186hr obtain most HR letters, policies and other documents that we adapt for our customers to ensure they are compliant with employment law and also best practice.
With our Monthly HR Support Package we look after the HR for small and medium sized companies throughout North West England and beyond who don’t have their own HR departments. It is a high quality, low cost product where we do most of the HR work for you, leaving you to concentrate on what you do best. Please Contact us for more details about the product, or with any other HR queries you may have.