How to prepare for pay rise requests

Preparing for pay rise requests

2022 has been the year of the great resignation (read more here) and with rising inflation and the rocketing cost of living, it is no surprise that pay rise requests are set to fly in at full speed.

The average pay rise is around 4% according to the ONS, however, inflation is set to hit 18% in 2023 - so these figures are clearly mismatched.

Typically, salary is reviewed annually, however, it is not a legal right to have a pay rise unless clearly stated in the employment contract. One thing to consider when reviewing pay rise requests is that your decision will ultimately impact your staff retention rate, one way or another.

Inflation will also be taking its toll on your business, so you may not be in a position to meet such requests.

Candidates are telling us they require higher wages and are starting to look elsewhere, however, due to the looming recession, they are also scared that it is the wrong time to move. This leaves them in a sticky spot. This is where you could offer support in other ways if a pay rise is off the table. Providing support and understanding will result in higher retention.

Is there something else you could offer?

There are struggles across the board, as an employer, for maximum retention, you should be understanding and try to offer advice during this financial crisis. Employees’ mental health could be impacted and in turn their work performance.

Could you offer support by assisting them in lowering their expenditure such as subsidised travel? Perhaps more remote working or office work if their home running costs have increased? Could your business operate a 4-day work week? This last option might reduce childcare, pet care, home office and commuting costs. Also consider subsidising or paying for more training, which could help your employees earn a promotion, support your business more and in turn increase their pay in the future.

These types of perks not only work for employee retention but will also attract the best talent to your organisation.

As always, we are just a phone call away if you need support, advice or have marketing or creative roles to fill.

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