Revealed: How the secret to big pay rises of up to 8% is staying in the same job for more than a year

Aspire To Aspire

People who stay in the same job for more than a year have enjoyed bumper pay rises, a new study reveals.

While average wages for all workers rose by a paltry 0.1 per cent in 2014, among those who stayed in the same role for 12 months their pay jumped 4.1 per cent.

And among continuously employed younger workers aged 18-21, their pay jumped by 8 per cent last year.

With inflation predicted to fall into negative territory as prices fall, it means people in long-term work should start to feel the benefits of the recovery in their pockets.

While average wages for all workers rose by a paltry 0.1 per cent in 2014, among those who stayed in the same role for 12 months their pay jumped 4.1 per cent

Pay rises for all full-time workers at 0.1 per cent were at their lowest since 1997, as employers continue to hold down wages.

This is driven by the number of people getting a job for the first time or returning to work, often in low-skilled roles.

However, amongst those employed in the same job for a year or more, median weekly earnings rose by 4.1 per cent last year, according to the Office for National Statistics.

It suggests that the secret to securing pay rises lies in staying in the same job, and not moving between firms too regularly.

A key factor in the increase in pay for long-term workers is the use of pay progression where, in many organisations, employees rise semi-automatically through a pay scale.

Staying in a job for more than 12 months will also make many workers eligible for ‘across the board’ pay increases, usually awarded on an annual basis.

Employment Minister Priti Patel said: ‘We’re creating a better and more prosperous future for Britain with a record number of people in employment and more women in work than ever before.

‘Behind these figures are countless stories of individual hard-work and determination – of people feeling more financially secure with a regular wage. I want to continue our welfare reforms so that we support jobseekers to develop the skills and experience to move into work and make the most of their lives.’ 

Young workers also saw the biggest increases in their pay after staying in a job for a year, up 8 per cent for 18-21 –year-olds, compared with 2 per cent for 50-59-year-olds

More experienced staff are also likely to be in line for overtime payments, bonuses and other performance pay.

Wages for ‘continuously employed’ staff are between 6.5 per cent to 8.7 per cent higher than median weekly earnings for all full-time employees between 2007 and 2014.

The ONS said this is in part because people who stay in the same job are more likely to be in higher occupational groups such as professional occupations and managers, directors and senior officials.

The data shows that last year average weekly earnings rose by only 60p per cent for all workers from £517.40 in 2013 to £518.

But among those who have been in a job for more than a year, it rose by £7.90 per week and £12 per workers in post for two years or more.

Young workers also saw the biggest increases in their pay after staying in a job for a year, up 8 per cent for 18-21 –year-olds, compared with 2 per cent for 50-59-year-olds. 

Andrew Hunter, co-founder of jobs website Adzuna, said: ”Employers are making concerted efforts to hang onto their top talent. 

‘Those workers who were in continuous employment for 2013 and 2014 saw their earnings rise more quickly than those moving jobs or joining the workforce. In particular, workers in senior management and director roles, as well as those in professional services, saw their salaries climb significantly. 

‘It counters the argument that the best way to scale the salary ladder is to switch positions; in the current jobs market, there is value in staying put too.’ 

Read more: http://www.dailymail.co.uk/news/article-3086196/How-secret-big-pay-rises-8-staying-job-year.html#ixzz3aUYAqMVa

 

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