Pay increases expected in 2014, Barclays research says

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More than half of businesses surveyed by Barclays will increase wages in 2014, with 39% awarding a rise to their entire workforce.

The survey of nearly 700 UK businesses also found that despite rising living costs, 52% of respondents said that wage pressure from employees was not an issue. However it is a major concern for 17% of respondents.

“After an extended period of wage freezes, which have been tough for employees, it’s good to see that so many employers will be increasing wages in the coming year,” said David Roust, head of recruitment industry, Barclays. “This can only have a positive impact on employee morale and the UK economy.”

When it comes to hiring intentions, the Barclays Employers Survey 2014 found that 90% of businesses surveyed are not planning any job losses, up from 79% last year. However, 49% are planning on increasing staff levels this year, down from 56% last year. As with the survey in 2013, medium-sized companies are leading the way in job creation, with 68% increasing jobs.

When looking at the types of roles businesses are looking to fill, the survey shows a jump in intention for more senior management hires, to 30%, up from 23% last year. The largest companies are most likely to increase senior management positions this year (46%), but the smallest companies have shown the most growth in this area – 24% compared to 12% last year. However, the vast majority (86%) are planning to hire at middle or junior level, which is largely unchanged from last year (83%).

Roust added: “Whilst no one knows when interest rates will rise, businesses should not be complacent. It would be prudent for firms to ensure they have sufficient cash flow to absorb the increase when it comes.”