Over half of employers (53 per cent) in Britain expect to see an increase in their pay budgets at the end of 2013, according to a new research.
The Chartered Institute of Personnel and Development’s (CIPD) annual survey of senior reward and benefits professionals finds pay rises driving the figures, with 84 per cent of UK firms rewarding their employees for good work.
Meanwhile, in a reading likely to excite those looking for jobs in London and other areas, just over half of the companies (51 per cent) said their budgets will increase as they look to take on more staff.
While some businesses had already taken on enough employees to guarantee their budgets would rise, others were confident about taking on even more workers in 2013.
Cited by freshbusinessthinking.com, the report also showed that many firms would like to see variable pay – like bonuses for good performance – playing a part in their annual budgets.
A total of 26 per cent said variable pay represents between 20-30 per cent of their total pay, but the study revealed that 38 per cent of companies are looking to implement this split.
Charles Cotton, rewards adviser at the CIPD, spoke in favour of an increase in variable pay.
Writing at cipd.co.uk, he said: “If appropriately designed, variable pay can help align organisational reward practices with the business strategy as well as assisting to communicate what behaviours, skills, values and attitudes the organisation values and how it will reward and recognise these.”