According to new research recently published by pay specialists XpertHR, private sector employers are expecting 2% pay rises in 2011.
Their findings were derived from a survey of 296 private companies, which covered 626 different groups of employees.
The research uncovered a number of points which suggest that pay bargaining in 2011 will lead to higher pay awards than those seen in 2010, including:
- 2009/10 pay awards amounted to 1.2% at the median. The 2% pay rise predicted for next year is comfortably above this rate.
- During the 2009/10 pay round, three out of ten pay awards saw no rise in pay whatsoever. By contrast, for 2010/11, employers predict that less than one in 10 pay awards will result in a freeze.
- Private sector companies are predicting that half of their pay awards will be higher in 2010/11 than they were in 2009/10.
Obviously, however, the condition of the economy will play a vital role in determining the level of pay awards. There are likely to be other pressures which will force pay awards down, such as company performance and an inability to raise prices. The strongest upward pressure on pay awards is likely to be inflation over the coming year.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
