Feeling the pinch: pay in 2023

18th October 2022

Staff member Julia

Julia Hanna

Be creative with total reward

This coming year’s reward round is going to be difficult for everyone. 

The trading environment is challenging, the talent market is tight, the cost of living is the highest in 30 years and everyone is feeling the pinch. 

The 2% salary world we inhabited for so long has all but disappeared. 

Whether your pay philosophy has a formal link between pay and prices or not, employees will have an expectation that pay review will go some way to easing financial burdens.  

This is reinforced by press reports of double-digit pay demands or awards. These are mostly in the public sector and are often accompanied by wrangling over the review of working practices in some way. 

Many employers want to respond to employee concerns, but, faced with spiralling costs (just to keep the lights on), meeting employee expectations will be tough. 

So, what do we know about pay for 2023? 

With inflation biting, employers are also looking to respond in other ways: 

So, with high expectations but potentially limited budgets, be clear about your pay philosophy and continue to deliver against that. And get creative with a total reward approach to see how else you can support employees through difficult times. 

Image adapted from  A pinch of salt by Tim Green

How we can help

If you’d like help If you’d like help articulating a clear pay and reward strategy, and developing a pay structure, please do get in touch for an initial conversation.

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