Britain’s manufacturers are seeing pay pressures rise in response to the soaring rate of inflation and the battle to attract and retain key skills and talent escalates according to the latest survey of manufacturing pay settlements published today by
www.makeuk.org Make UK.
The survey of 152 manufacturing companies carried out in December also shows that while two-fifths of companies have come to an agreement, around 45% are waiting to see how the inflationary picture develops and the impact of forthcoming increases in National Insurance and the Minimum Wage before making a decision.
Furthermore, the level of some of the increases signifies that companies feel it is time to reward staff for the efforts they have made over the last couple of difficult years in response to the pandemic.
In addition, the survey shows stark comparisons with January last year with just 2% of companies freezing pay and 4% deferring agreements. This compares to a third and almost a quarter (22%) last year respectively. While the majority of settlements were between 2% and 3% the highest settlement was 14%, compared to a highest settlement last year of 5.8%.
Verity Davidge, director of policy, said: “The picture for manufacturing pay settlements compares starkly with this time last year when, for many companies, it was a simple choice of freezing or deferring agreements given the severe impact of the pandemic.
“While some companies clearly feel they need to reward their staff for the last couple of challenging years, others are facing battle to attract and retain key skills. As a result, the picture this year for manufacturers agreeing pay settlements is far more complex.”