Tag Archive for Pay rise

Small businesses expect to increase pay by 3% next year

By Timothy Adler on Small Business – Advice and Ideas for UK Small Businesses and SMEs

Small business owners should brace themselves to pay staff on average 3 per cent more in 2022, as employers face a shortage in staff.

Hospitality businesses are particularly badly affected with staff shortages due to the double whammy of Brexit and Covid.

Employers plan to increase pay by an average of 2.9 per cent next year, according to a survey by advisory, broking and solutions company Willis Towers Watson. That would bring pay growth back to a level not hit since 2019 when wages were at last beginning to rise after a decade.

>See also: Can I pay remote workers less than in-house staff?

Paul Richards, data analyst at WTW, said that firms were competing for the best staff.

“As the Covid-19 threat starts to recede and the economy starts to recover, we’re seeing significant year-on-year improvements in pay rises,” Richards said. “Employees in some industries are faring better than others, but these are often the industries that were hardest hit by the pandemic, such as leisure and hospitality.

“Overall the outlook for salaries is strong as businesses start planning budgets for 2022, and many are keen to retain top performing

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Businesses increasing prices, avoiding investment to cope with rising pay

Originally written by Timothy Adler on Small Business
Small business owners have been paying themselves less, increasing prices, holding back investment and reducing staff hours in response to rising pay.
Seven in ten small business owners (71pc) have eaten into profits in order to absorb the National Living Wage being increased to £8.21 per hour in April. Nearly half of small businesses have had to increase prices (45pc), while 29pc have delayed investment and 23pc have reduced hours worked by staff, according to research.
The Federation of Small Businesses has called for politicians to stop putting up the national minimum wage because rising pay undermines SMEs’ ability to invest and grow.
“While politicians are locked in a battle of who can make the boldest promises on pay, they fail to acknowledge that – within many smaller businesses – bigger pay packets often mean less investment, fewer training opportunities and higher prices,” said Mike Cherry, the FSB’s national chairman.
“With pay now outstripping inflation, it’s harder and harder for small business owners to put funds aside for the investment needed to close the UK’s productivity gap.”
He called for the minimum wage to be set independently by the Low Pay Commission, which was set up alongside the

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Can’t afford a pay rise? 9 alternative ways to reward your staff

If you have an employee who is doing a sterling job and you’d like to thank them in some way, but are lacking the resources to offer a pay rise, then there are many other ways you can reward them. Yes – many of us would probably prefer money, but for some companies this just
The post Can’t afford a pay rise? 9 alternative ways to reward your staff appeared first on Small Business.

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The Great British pay rise: What do Brits think?

The issue of pay rises in the workplace is rarely far from the news, or our collective minds. From the lop-sided male v female BBC pay scale, to the wild increases of city-slickers at a time of recession, pay rises are quite rightly a divisive subject. Financial experts Money Guru were keen to gauge the
The post The Great British pay rise: What do Brits think? appeared first on Small Business.

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Looking for a pay rise in 2018? These ten industries are your best bet

If you’re looking for a new job right now which pays higher than you’re currently earning, you could be in for a treat. New data from CV-Library, finds that key industries across the UK saw advertised pay soar in 2017, making them the top sectors for a pay-rise this year. The data, which analysed average
The post Looking for a pay rise in 2018? These ten industries are your best bet appeared first on Small Business.

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