Employers Turn to Flexible Work and Training to Retain Staff

  • Record pay rises expected in 2022
  • Median basic pay increase at 3% in the past year
  • 70% of employers plan to recruit in next three months
  • Redundancy intentions lower than pre-pandemic levels
  • 46% of employers with hard-to-fill vacancies increased wages for new hires
  • 40% of employers plan to raise pay for incumbent workforce in future
  • Increased focus on employee retention and flexible working opportunities

Employers are set to award the highest median basic pay increase in a decade, with 3% recorded in the past year. The Chartered Institute of Personnel and Development’s (CIPD) Labour Market Outlook reveals this quarter’s figure as the highest since its current methodology began in winter 2012/13. Over two-thirds of employers plan to recruit in the next three months, while redundancy intentions have significantly decreased from 16% pre-pandemic. However, almost half of UK employers report hard-to-fill vacancies and two-fifths face retention issues. To combat this, 48% of employers with difficult vacancies increased wages for new hires, and 40% plan to raise pay for existing staff. Flexible working opportunities and employee training are also on the rise.

Factuality Level: 8
Factuality Justification: The article provides accurate information from a reputable source (CIPD) about pay increases, recruitment challenges, and retention strategies in the UK labour market. It also includes relevant quotes from an expert on the topic. However, it could be improved by providing more context or data on inflation and its impact on real wages.
Noise Level: 7
Noise Justification: The article provides relevant information about pay increases, recruitment challenges, and retention strategies in UK organizations. However, it contains some repetitive information and could benefit from a more in-depth analysis of the underlying causes and potential long-term consequences of these trends.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the impact on companies’ recruitment, retention strategies, and employee wages which can affect their financial performance.
Financial Rating Justification: The article talks about changes in pay increases, recruitment challenges, and employee retention efforts by companies, which can have an effect on their overall financial performance and costs. It also mentions the Apprenticeship Levy, which is related to government policies that impact businesses.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk