67% of UK Workers have Yet to Receive a Pay Rise this Year, Despite Spiraling Cost of Living Crisis
National statistics highlight which UK workers are getting pay rises and why.
- Nearly half of UK workers consider coming into the office to save money on home energy bills, with Gen Z men most likely to consider this
- Almost a third of 18- to 34-year-olds have not had a pay rise within the past year
- Women are disproportionately affected by cost of living, with men more likely to receive a pay rise to adjust to rising costs
- Free or discounted fuel selected as one of top five job perks by nation
- Londoners most likely to receive a performance or promotion-related pay rise
- One in four receive pay rise in the past year due to their employer’s efforts to improve staff retention
A national survey of 2,000 people, commissioned by global provider of workforce and advisory solutions, Resource Solutions, revealed the real impact that the cost-of-living crisis is having on the UK workforce.
Although working from home is commonplace for many now, rising costs have prompted 42% of UK workers to consider coming into the office in order to save money on home energy bills, and Gen Z are most likely to consider this (76%). In fact, over one in four (26%) of workers are already choosing to come into the office for this reason.
Despite the cost-of-living crisis affecting younger generations the most, almost a third (32%) of Gen Z workers have not had a pay rise within the past year. Women have been adversely affected by the rise in cost of living; while 37% of men received a pay rise to help them adjust to rising costs, only 29% of women stated the same reason for a pay rise, if a rise was received at all. Yet over half (51%) of men have considered going into the office more in order to save money on energy bills, an option that is not always available to women who by and large still tend to assume a larger proportion of childcare responsibilities.
Norma Gillespie, CEO of Resource Solutions, said: “Along with cost of living concerns, our survey revealed 41% of workers are more likely to stay in their current job in the knowledge that a financial recession may be around the corner, while only 17% report considering changing jobs in light of economic predictions. This indicates that the two-year-long Great Reshuffle may finally come to a halt. As uncertainty around the near future grows – some workers are beginning to find the idea of quitting their jobs too risky. Whether they are more likely to leave or stay in their current role, the current cost of living crisis is encouraging employees to evaluate their financial position and assess the job security in their current position or elsewhere. There is some truth in the well-known and unfortunate saying of “last in, first out”, and employees know this all too well.”
Younger generations benefit most from pay rises – over 55s overlooked
One in four UK workers reported receiving a pay rise in the past year due to their employer’s efforts to improve staff retention. Younger generations are most likely to experience the benefits of businesses fighting the ‘war for talent’, as 18% of Gen Z workers cited this as the reason for their wage inflation, in contrast to a mere 8% of 55+ year-olds.
Likewise, the under-24s age group is most likely to receive a pay rise to account for the inflated salaries of newcomers (33%) – while the 55+ group have been the least rewarded by this type of pay adjustment (5%). Within this same age demographic, 8% of those in the latter years of their career haven’t received a pay rise at all in the past three years.
“While some companies are inflating their salaries to attract the best talent and compensate for the rising costs – the reality is that wages are not keeping up with inflation. We can see that while employers are addressing the pay concerns of their younger staff, over 55-year-olds are largely being overlooked,” continued Gillespie.
Ballooning salaries benefitting men in London the most
As the candidate-led job market sees salaries balloon, Resource Solution’s survey reveals that the gender pay gap persists despite women being hardest hit by the cost-of-living crisis. In the last year, over one in three men (34%) got a pay rise from their current job, compared to 29% of women.
Men are more likely to receive a pay rise due to their performance at work (36%), while only 27% of women reported being financially rewarded for their job execution. Male employees are also more likely to be given a pay rise to match that of new hires (21% compared to just 13% of
women). Almost a quarter of men (22%) stated their salary increase was in return for their length of service, significantly higher than for women (16%).
More shockingly almost one in ten women (9%) have never received a rise in their current role, compared to one in 20 men (5%). Almost a third of women (32%) stated that their most recent pay rise was due to a company’s blanket increase, more than for any other reason.
Performance vs length of service, the salary increase decider
Regionally, East Anglia was the best region at offering a pay rise to help staff with rising costs. Professionals in London were most likely to receive a performance or promotion related pay rise (77%) followed closely by workers in Northern Ireland (73%), while workers in Wales are least likely to receive a pay rise for this reason (18%). Over one in ten workers in the South East have gone more than three years without a pay rise, more than any other region (11%).
Work perks and benefits front of mind to help cut costs
According to Resource Solutions’ data, a four-day work week is the most popular benefit people look out for when applying for a new job. Benefits that would provide financial savings also ranked high in the top six most sought-after benefits:
- Four-day work week (40%)
- Private healthcare (29%)
- Summer working hours (25%)
- Unlimited holidays (24%)
- Free/discounted fuel (22%)
- Free/discounted lunch and or breakfast (18%)
In the midst of a severe fuel crisis, almost one in four employees (22%) would choose free or discounted fuel as one of the top perks that would make them more likely to go for a job opportunity. Those in the North East (37%) ranked this as their second most-favoured benefit after a four-day working week. As grocery bills continue to rise, workers are also most interested in free or cheaper lunch being on offer at their workplace, with 18% ranking this in their top five. Free gym memberships also ranked highly, particularly among 18-to-24 year-olds, 23% of which rated this as one of the most desirable perks.
For further press information or to request a copy of the report please contact:
Yasmine Triana | Arabella Halfhide | Tiffany Huret | Francesca Colombo
T: +44 (0)203 440 8930
E: [email protected]
About Resource Solutions:
Resource Solutions is a leading provider of workforce and advisory solutions, managing a recruitment budget of over £2 billion on behalf of our clients since 1997, as part of the Robert Walters Group.
Resource Solutions’ comprehensive suite of tailored services serves clients across various sectors and industries such as Professional and Financial Services, Pharmaceutical, Manufacturing and FMCG.
Pioneers in the development of outsourced recruitment, Resource Solutions has a global footprint across 70 countries, working in close partnership with organisations managing talent acquisition for global brands with demanding resourcing strategies to single sites with specialist recruitment needs.