As the song goes, If I didn’t eat, I’d have money to burn!
It seems that rather than exceeding inflation, pay rises are lagging far behind:
Pay rises have remained stable at 3.5% in recent months, but settlements might be heading for a “fall”, according to a new report.
Average awards have been 3.5% since the end of last year, but a study of 70 agreements this month showed the figure had fallen to 3%.
Fewer than one in three rises were higher than the previous year, said pay specialists IRS, while increases in private firms were around 1% higher than the public sector over the past year at 3.5%.
Sheila Attwood, of IRS, said: “Our sample of April pay awards clearly shows that pay awards are receding at a faster rate than headline inflation.
“More pay awards are worth less than a year ago, and Gordon Brown seems to be succeeding in keeping a lid on public sector awards.
“The fact remains that pay awards are some way below RPI inflation and not providing for a real increase in pay for many employees.” [Emphasis added]
And the year-on-year pay cuts are having an impact:
More than four in ten UK employees are considering quitting their job in the next year, YouGov research for Investors in People suggests.
A lack of motivation at work is cited as a major problem, with unreasonable workloads, feeling underpaid and a lack of career path being blamed.
About half of staff said they had not been supported beyond their initial induction at work.