By the end of July most companies would have completed their annual pay award adjustments and we can start to see the trend of actual pay settlements versus predicted. Recent data from XpertHR in the UK indicates that the median pay rise awarded by employers was 2.5 percent over the past three months – a level that has remained unchanged since the start of 2018 and is still tracking below inflation. The last time pay rises were higher than inflation was in August 2016. So for employees in the UK the pay squeeze continues.
There is a similar picture in the US where average hourly wages, adjusted for inflation, were unchanged in May from a year earlier, even as nominal pay accelerated to a 2.7 percent annual gain from 2.6 percent in April But Labor department reports for June show the consumer price index rose 0.2 percent from the previous month and 2.8 percent from a year earlier eroding wage gains that remain relatively tepid despite an 18-year low in unemployment.
This makes it tough for employers wishing to leverage pay to engage and retain key talent, particularly in a tight labor market. Making sure rewards go to those who contribute most to your business is key to success. The right compensation software can help to optimize wage allocation calibrating multiple talent metrics to highlight key talent when making reward decisions and intuitive alert functionality ensures that compensation recommendations are made in line with appropriate governance, are equitable, fair and risk aligned. To find out how Curo can help you...just ask us.