Nearly Half of Capital Companies Are Preparing to Boost Salaries Next Year

London Firms Are Tight‑Rimming this Year — Report on Pay Stays

According to a fresh study from Robert Half, a whopping 42 %… of businesses in the capital are planning to hand out flat‑rate salary bumps sometime within the next twelve months.

Pay Pacing: Inflation vs. Flat‑Rates

38 % of London companies say the rise will simply match the general inflation slide.
But that only accounts for 28 % of firms – the rest are looking at more neutral, flat‑rate increases.

When the Cup Runs Dry

Not every business is feeling the breeze of a loosening pay environment, however. The guide surveys a curious split in the market:

19 % of firms admit they won’t lift pay above what’s already on the table.
Another 17 % warns that keeping up with inflation could actually hurt their own bottom lines.

Recruitment: The Balancing Act

What happens to hiring when budgets tighten? The answer isn’t a one‑liner.

About 41 % of employers are still eyeing headline growth – they’ll bring more people on board in the coming year.
However, 34 % see recruitment operations at risk because they can’t compete with salaries elsewhere.
And wouldn’t a good work‑life balance be a magic wand? Well, 28 % worry that poor balance will scare off talent.

Bottom Line

If you’re a London business, it’s pretty clear the payroll game is a bit of a juggling act: flat rates are tempting, inflation ties are a safety net, and the hiring squeeze is real. Talk to your HR folks, keep an eye on market rates, and remember: a reasoned salary strategy keeps the team happy, the hiring pipeline thick, and the company on track.

Skill Shortage, Salary Inflation, and the Great Hiring Quest

Meet Philip Boden, the tech-savvy Market Director at Robert Half. He’s done a quick reality check on our capital’s workforce—skills are scarce, and the pay game is getting out of hand.

Shortage Snapshot: Tech talent in the city is sliding into a “scarcity” mode—think of it like a vending machine that’s out of your favorite snack.
Pay Inflation Alert: Companies are tossing money up the air to keep employees on board, but that’s a fleeting trick that can’t keep the economy afloat.

So, what’s the smart play? Here’s what Boden says to keep the talent pipeline flowing:

1⃣ Ditch the All-That-Welfare Pay‑Only Plan

Pay is essential, but it’s not the only magnet. Imagine a job that feels like a full-service buffet—salary is just one dish.

2⃣ Boost Career Development

People dream of climbing the ladder, not just swinging a paycheck. Offer training, mentorship, and real growth paths—make those eyes gleam.

3⃣ Embrace Flexibility (Seriously)

Hybrid work, adjustable hours, and remote options are the new buzzwords. Employees love a good work‑life mix, and it keeps them coming back for more.

4⃣ Build a Holistic Recruitment Package

Think beyond the paycheck—benefits, wellness, culture, career angles. A well-rounded package is the secret sauce for hitting those headcount targets.

Bottom line: if companies want to stay ahead in the talent race, they must create an enticing, rounded package that speaks louder than a paycheck alone.