Where 2023’s Pay Rise Party Is Nowhead
Everyone caught their 6 % bonus – that’s the sweet spot our HR experts from XpertHR found for the quarter ending December 2023. In plain language, half the workforce was happier than the prior year, and the rest had a slightly better deal.
Quick Stats (No Spoilers)
- 3⃣/4⃣ of pay bumps (76 %) were above 2022 levels.
- 1⃣ in 10 (12.9 %) slipped downward.
- 2024 poops out @ 5 % in January.
- Half the 2024 awards compared to last year’s make‑ups.
Sheila Attwood, XpertHR’s senior content wizard, had a cheeky forecast:
“Quarterly pay deals vim and vigor are usually frozen by January. On the first wave of these deals, the median jump drops to 5 %. That’s a little less swagger than the whole of 2023, which hovered at 6 %.”
Feel the low‑grade blues? Don’t lose hope. Back‑to‑back cost hikes don’t mean we can’t keep the team smiling. It might be time to revisit what “benefits” really mean.
Turning Benefits Into the Workplace Magic Wand
- Analyse what employees actually covet. Why offer something nobody touches? Pinpoint the perks that really stick and double down on them.
- Compare cousin companies. Benchmark with your market peers to keep your estates competitive and to avoid feeling like you’re living in a ‘benefits graveyard.’
With the flutter of the pay awards settling down and the cost of living still gnawing, this is the moment to up the value you give without stirring the salary pot.
Dec. ’22‑Dec. ’23 Pay Review Snapshot
From 15 mid‑year settlements and a letterhead council of 43,723 employees:
- Very tight range. The middle 50 % of pay decisions shiver under a single‑percentage‑point spread: 5.2 % min to 6.0 % max. A stark change from last year’s wide‑open 5‑8 % band.
- Median stays square at 6 %. Only a few quarters dared to break that wall.
- More people deserve a raise. In this sample, 54 % of the latest deals outstrip the same group’s 2022 compensation.
In a nutshell: The pay fever is still brewing, but habit and programmers’ budgets are almost brushing up against the edge of the envelope. Ready to pivot from the “raise” mantra to a more holistic “survivor” approach? Let’s roll the benefits‑innovation board and give the workforce something that feels like a real upgrade.
2023 end-of-year sector review
2023 Pay Awards: A Year of Surprises and Skirmishes with Inflation
Picture 2023 as a roller‑coaster that suddenly hit a turning point: the median pay award jumped to 6%—the highest since 1991. Yet, most workers found their raises still trailing behind the inflation train. This roller‑coaster ride covered 1,018 deals, touching about 6.3 million employees across the board.
Public Sector: Leaders & Laggards
- Overall public sector topped the charts with a 6.5% rise, beating the overall median of 6%.
- Local government kept the pace with an impressive 9.2% bump.
- Central government lagged at 4.5%—perhaps the funding deficit drama didn’t help.
Manufacturing & Production: The Middle‑Ground Militia
- Whole sector saw a solid 6% median boost.
- Construction and general manufacturing snagged the lower end—5% and 5.5% respectively.
- The electricity, gas, and water trio pulled ahead with a 7.5% jump, showing that a steady supply can indeed pay off.
Private‑Sector Services: Where the Gold Is (Mostly)
- Mid‑year, private services matched the public with a 6% median.
- Services like facilities, security, and support led the pack at 8%.
- Transport and storage followed closely at 7.8%.
- Firms in professional & business services got the smallest slice at 5%.
Not‑For‑Profit: Mirror, Mirror
Non‑profits reflected the whole‑economy trend, with a neat 6% median pay boost.
Quick Takeaway
In short, 2023 was a mixed bag: some sectors leapt ahead, others took a modest step, and every worker kept fighting the inflation monster. Great news for pay, but also a reminder that wages still need a sturdier boost.
Want the freshest updates on pay trends? Stay tuned—our next round of insights is just a click away. #PayTalk2023
