Workers demand fair pay amidst cost of living crisis, Totaljobs report reveals

Totaljobs’ analysis of over 23 million job adverts has culminated in the 2024 Salary & Benefit guides, aimed at helping employers benchmark salaries. This comes at a time when the cost of living significantly impacts UK workers’ satisfaction and expectations around pay.

As the pay review season nears, workers anticipate a 3.7% salary increase. However, dissatisfaction is high, with 30% stating they would look for a new job if their pay rise is below expectations. About 34% of workers are unhappy with their pay, mainly because “they feel their salary doesn’t reflect the time and effort they put into their work.”

Financial pressures are a concern for many, with 12% struggling with basic living expenses and 57% worried about their earnings amidst the cost of living crisis. Salary’s role in job satisfaction and loyalty is clear, with 71% linking higher pay to greater satisfaction and 69% to more loyalty towards their employer.

Despite wage growth since Covid-19, inflation has diminished these gains. Two-thirds of workers have seen a pay rise in the last year, averaging 5.5%, mainly through standard review processes or adjustments for inflation. Yet, only a small fraction (5%) secured increases through negotiation.

Advertised salaries increased by 3.4% across key industries from 2022 to 2023, a slowdown from the previous year. The highest wage growth was in Retail, Legal, and Travel sectors. Beyond salary, 44% of employees would forego a pay rise for specific benefits, especially full-time remote working.

Julius Probst, European Labour Market Economist at Totaljobs, stresses the importance of listening to employees’ needs: “Whilst inflation has fallen in the past six months, its effects continue to drive shifts in both wages and the labour market, but it is essential to recognise that money is not the sole factor, businesses listening to the needs and wants of employees is vital.” He advocates for fair and transparent salaries, along with promoting workplace support and benefits, to address recruitment and retention challenges in 2024.