69% of UK employers worried about losing staff over low pay


69% of UK employers worried about losing staff over low pay

  • 69% of employers still concerned about losing staff over lower pay
  • 44% of UK employers’ planned pay rises for staff (of between 3-4%) will just surpass inflation
  • 76% of professionals plan to look for new job this year
  • 45% of professionals not expected to get bonuses
  • Professionals moving jobs could secure salary bumps of between 10-15%
  • 60% of professionals willing to stick to a lower-paying job if it offers a flexibility

Over two-thirds (69%) of UK employers are concerned about losing their staff over low pay this year.

Even though 44% of the pay rises UK employers intend to give staff this year are expected to slightly exceed the current rate of inflation (2.5%).

New findings from Robert Walters suggest that thanks to ONS figures reporting a recent drop in the Consumer Price Index (CPI), some – though not all – UK employees may feel their pay going a little bit further.

Experts have already cautioned that the April hikes in employer national insurance contributions and rises in minimum wage will further impact UK inflation this year.

Chris Eldridge CEO of Robert Walters UK & Ireland: “With growth meagre, no guarantees that it will continue, and professionals still prepared to leave a position for the promise of better pay – worries remain.

“However, the unexpected drop in inflation, paired with the 0.1% increase in GDP is allowing employers a small respite.”

Reasons for pay bumps

76% of professionals state they’ll be seeking a new position this year, with better pay being one of the leading reasons for doing so.

44% of managers agree that the leading reason for awarding pay rises this year is to improve moral/retention. Followed by efforts to alleviate cost-of-living pressures (31%), and for a promotion, time served, or targets being met (21%).

Not everyone is celebrating

Whilst it’s true that the average pay increase for professionals will sit between 3-4% – currently just above inflation. It is worth noting that over a quarter (29%) of employers have stated they’ll only able to award pay rises of 2% or less.

Not only that, but bonuses continue to disappoint – with recent Robert Walters research revealing that while 44% of white-collar professionals in the UK believe they’re ‘firmly on track’ to a receive an annual bonus, 45% may be left empty-handed.

Chris adds: “Employers right now are finding their hands are tied. Coming into 2025, many are juggling shrinking budgets with increasing employee demands.

“It’s unsurprising that some professionals are willing to take the risk and scope out new opportunities to see if the grass is greener elsewhere. Especially if they feel their expectations aren’t being met with their current employer.”

Professionals looking elsewhere for competitive compensation

These findings underline a stark reality— that employee’s still risk not significantly improving their financial standing by sticking it out in their current roles. As a result, the most viable path to securing a higher salary in the upcoming year for many involves switching jobs.

The Robert Walters’ Salary Survey reveals that on average a professional can secure a 10-15% pay increase for the same job role in a different company – with this doubling for in-demand roles or scarce talent.

A third of professionals expressed an openness to leaving their current organisation for a salary increase of between 10-15%.

However, 46% stated they would only consider moving for a pay bump over 15%.

Companies compensating with benefits

Over 3 in 5 employers have admitted to being ‘concerned’ about losing primary staff who have received below inflationary pay increases, with over half expecting a dip in morale or productivity if compensation is not enough.

However, employers shouldn’t overlook their ability to compete for talent. To help counter the concerns, many employers have increased investment back into employee experience.

Professionals are increasingly placing value in alternative compensation, with 52% of professionals saying they’d consider a job offer based on its provision of personal development funding or work from home subsidies (49%).

Work / life balance also remains a top priority, with 60% of professionals willing to stick to a lower-paying job if it offers a flexibility, rather than switching jobs solely for better pay.

Chris concludes: “Whilst the recent drop in inflation may calm some nerves for the coming year, many employers are holding their breath as we edge closer to April.

“It shouldn’t be ignored that whilst salary will always remain a crucial part of any position, the degree of flexibility a role offers could be a vital incentive for professionals to stay.

“On the flip side, the recent drop in inflation could make some professionals consider if this is their time to take a calculated risk and move for a better salary, progression options or increased flexibility.”

Original Article: HR News

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