12 February 2024 , 10:37
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Bosses think pay will rise by 4% in private companies in 2024, which is less than in the past, a study shows.
This is the first time they expect pay to go down since spring 2020, according to the Chartered Institute of Personnel and Development (CIPD). In the public sector, people think pay will go up by only 3%, not 5% like before, the report says. The CIPD found out that fewer bosses plan to hire more people than before.
About one in three bosses want to hire more staff in the next three months, but one in 10 plan to cut jobs. Many bosses say it's still hard to find the right people for jobs, and some worry it will be tough to hire in the next half-year, the report tells us.
Jon Boys from the CIPD said: "We've seen a sustained period of high wage growth in response to a tight labour market, and high inflation pushing up the cost of living. Pay growth has helped individuals but it leaves employers with a higher wage bill to cover."
"To see a sustained return to growth, there needs to be a real focus on boosting productivity by investing in workplace skills and technology. It's also in employers' interest to communicate with employees their wider benefits package and improve job quality to compensate if they are planning to reduce base pay increases."
Three-quarters of workers will still go into work even if they have a cold
"The cost of living crisis is not over for many workers so finding other ways to help them besides pay, such as providing flexible working where possible to reduce commuting or childcare costs can make a big difference."