Responding to the most recent labour market statistics from the Workplace for Nationwide Statistics (ONS), John Pearce, SVP Payroll Operations at CloudPay, has warned that pay inflation charges are unsustainable.
He mentioned that there must be further assist to be put in place as individuals are combating the price of residing disaster, however warned pay will increase is not going to be sustainable for everybody.
Pearce mentioned, “With the price of residing nonetheless rising and inflation charges remaining stubbornly excessive, pay will increase aren’t going to be sustainable for all. We imagine a steadiness must be struck the place workers are paid pretty, however are additionally given entry to advantages and monetary training or recommendation that gives greater than pay help.
“It’s clear that individuals are struggling to make their wages go additional and there must be further assist in place – that’s pushed by employers – to allow them to entry tailor-made monetary recommendation throughout these troublesome occasions. Offering versatile pay options that may help those that have sudden prices earlier than pay day will even maintain individuals away from pricey loans that may solely worsen their monetary scenario.
“Pay inflation can’t be the one resolution to the financial challenges that as we speak’s workforce is dealing with. Companies want a better strategy, and that features flexibility round pay and monetary training.”