Need a pay rise? Why you’re earning less in real terms in 2017
Since 2008, prices have gone up faster than wages in the UK. This means you have to spend a lot more year on year to maintain the same standard of living. Your earnings in real terms work out as less – unless you’re lucky enough to have had a pay rise!
This year has been a bad one for wage figures, with inflation rising to 2.9% in May this year and according to John Hawsworth, chief economist at PwC, is likely ‘heading above 3%’ later this year. Meanwhile Samuel Tombs at Pantheon Macroeconomics described wage growth as ‘astonishingly weak’, implying real wages had fallen by 1.5% in April – the sharpest fall in 3 years. You may have noticed you’ve been spending more and saving less.
Analysts have come up with multiple reasons why wage growth has slowed in the UK. From more positive changes in flexible working arrangements to negative productivity issues and interestingly one charge lies with employees themselves. Some feel employees have been more reluctant of late to ask for pay increases given the economic uncertainty ahead (yes, they mean the Brexit effect).
However remember that right now the market is very candidate driven, with a high demand for staff yet few high calibre candidates for companies to choose from. If you are confident in your worth and have kept a record of your achievements, you should be in a strong position to present this to your employer. If you’re having a positive impact on their business, they will not want to lose you. Given the current climate, incremental salary increases have become more important. If you are being paid below what you deserve, you may want to start looking for a company who will appreciate your talent and reflect it in your pay cheque.
More than ever then, incremental salary rises are important. Make sure you keep a record of your achievements and present your worth to your employer. If they are paying you below what you deserve, you may want to start looking for someone who will appreciate your talent and show it in your pay check.
Right now the market is candidate driven, with a high demand for staff yet fewer high calibre candidates to choose from. Now might be the time to seek and your new marketing challenge, and with it, a well-deserved pay rise.
To take the next step to your new marketing role, contact Melvin Day on firstname.lastname@example.org