UK to return to real wage growth in 2015

Aspire To Aspire

 

British workers are set for a boost in 2015 as real wage growth returns for only the second year since 2009, according to research by management consultancy Hay Group.

The data, taken from Hay Group’s Paynet database of about 16 million employees worldwide, predicts average wage growth of 2.5% for UK employees in 2015.

While this is no higher than 2014, the lower inflation levels (forecast at 1.7%) will see real wages increase by 0.8% in the next 12 months.

Intensifying skills shortages in the oil and gas industries will see wages increase by an average of 3.5% across the sector. Similar pressures will see pay in the manufacturing and chemical industries increase by 3%.

The public and not-for-profit sectors, restricted by the government’s 1% pay cap, is slightly behind the curve with overall growth forecast at 2%.

Further afield, workers in countries with the highest wage growth will fail to benefit due to higher corresponding inflation.

Turkey is set to see a wage increase of 9%, but this will largely be offset by the 8.9% rate of inflation.

Hay Group consultant Adam Burden called the figures “an encouraging sign of confidence” in the UK economy. “Now that many employers have reasonable budgets to play with, they need to ensure these are implemented effectively to help make employees feel valued and drive motivation in the workplace,” he said.

“In organisations that give pay rises based on performance, employees finally have a good increase to aim for.”

– See more at: http://www.hrmagazine.co.uk/hro/news/1148687/uk-return-real-wage-growth-2015#sthash.XGGCujKO.dpuf

 

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