It was announced today that wages had risen by approximately 8%, the highest rate since records began in 2001.
Recently the CIPD (Chartered Institute of Personnel and Development revealed that of 2000 employers it had spoken to 40% had made counteroffers to keep hold of staff tempted by higher wages from rivals in the past 12 months.
With good employees in short supply and vacancies at over 1 million in the last 12 months it is no surprise that employers want to hang on to key and valued people.
However, with no sign of any easing of interest rates, costs continuing to rise and ongoing difficult trading conditions is this ever-rising wage rate spiral sustainable for businesses?
Bibby Financial Services has said that over half of the SMEs it surveyed “think the current business climate is worse now than during the pandemic. Four in ten believe trading conditions are tougher now that they were amid the pandemic, while more than a third said the global economy is doing worse than it was after the 2008 financial crisis”.
It is the perfect definition of being between a rock and a hard place for many businesses.
So what can you do to protect your business?
Firstly, keep a close eye on your finances and we have a free tool to help you.
You can download it here and if you need someone to talk to message us or call.
We’re here to help.