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Workers ‘disillusioned’
by recent pay inflation
fter a year of pay exceeding inflation, automation and digital transformation to
Athe tables seem to be turning on worker enhance productivity, while 40% are optimising
pay expectations as employers take stock of workflow management.
regulation and tax hikes. That’s according to
the latest data from international recruitment According to Robert Half, with increases to
expert, Robert Half. National Insurance Contributions (NICs) also
adding to financial pressures, it is less likely
Data from the firm’s latest Jobs Confidence workers will get the pay rise they want in the
Index (JCI) – an economic confidence tracker New Year.
produced in partnership with the Centre for Matt Weston, Senior Managing Director UK &
Economics and Business Research (Cebr) - Ireland, at Robert Half commented:
revealed that 63% of workers are confident
in their job security for the next six months. “Workers have seen high wage growth in
However, a slowdown in real wage growth and response to the cost-of-living crisis, which has
an eight-point drop in the pay confidence pillar led to a level of expectation among employees
of the Index indicates that the tide is turning of continued pay rises. The reality, though,
for workers – with the power shifting back to is that many firms simply can’t sustain this,
employers. particularly with NICs set to increase.
Additional statistics from Robert Half further “Given that the UK’s productivity levels have
indicate a reversal in remuneration growth remained stubbornly low, we are seeing a
potential. According to its 2025 Salary Guide, growing number of companies looking at ways
70% of workers are finding it more challenging to streamline current operations and better
to negotiate a pay rise compared to last year. utilise resources. This is likely to continue until
Employees do, however, feel they deserve an the economic climate settles from the recent
increase, whether that’s due to the growing upheaval we’ve experienced. However, that’s
costs of living (39%), because they expect not to say that workers will lose out overall.
it every year (29%) or due to exceeding The proposals in the Employment Rights Bill
performance goals (25%) and a general recognition within the business
community that advanced perks and benefits
Employers are seemingly less willing to
further add to employment costs, focusing are a must in the modern world, mean that
instead on improving productivity. Data from employees will reap the rewards beyond their
the firm’s 2025 Salary Guide revealed that pay packets.”
44% of businesses are planning to implement
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