Search

Wages set to fall by 0.5% in 2018, report predicts

£7.50, the national minimum wage.
Picture: ANTONY KELLY

£7.50, the national minimum wage. Picture: ANTONY KELLY

Archant Norfolk 2017

Real wages could fall by 0.5% next year as pay rises will not keep pace with inflation, a new report predicts.

Research by Hay Group suggested pay rises will average 2% in 2018, compared with an inflation forecast of 2.5%.

Hay Group, part of advisory firm Korn Ferry, said that in contrast wages in other European countries such as France and Germany will increase above the rate of inflation.

Benjamin Frost of Korn Ferry said 2018 was set to be a “tough year” for UK businesses.

“Companies need to think about how they target the limited money they have available for pay increases to the parts of the business where it will have the most impact on employee performance.

“Inflation is pinching wages internationally and Brexit [is] elevating levels of uncertainty. UK organisations will be forced to make crucial decisions about where money can be best allocated to boost employee morale and motivation,” he said.

Search hundreds of local jobs at Jobs24

Management Jobs

Show Job Lists

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter

Our Privacy Policy

Insight

Like Henry VIII, modern-day politicians continually invent new ways of taxing their citizens.

Voting in South Norfolk Council’s Business Awards, celebrating the economic success of the district, is now open.

Women in Business

cover

Enjoy the
Women in Business
digital edition

Read

Business East

cover

Enjoy the
Business East
digital edition

Read

Celebrating Success

cover

Enjoy the
Celebrating Success
digital edition

Read

B2B Exhibition

cover

Enjoy the
B2B Exhibition
digital edition

Read

Green 100

cover

Enjoy the Green 100
digital edition

Read

Meet the Team

Mark Shields

Business Editor

|

Chris Hill

Agricultural and Farming Editor

|

Business Most Read

Awards

Norfolk Future 50 EDP Business Awards Green 100