Payroll Pain: UK Employers Face a Wage‑Worried Winter
It’s that time of year when HR teams flip through year‑end reports and discover the inevitable salary surge saga. A fresh study from SD Worx reveals that 53% of UK employers have seen their wage costs shoot higher over the past year. While the Office for National Statistics says overall UK wage growth dipped to 4.9% last quarter, internal payroll committees are telling a different story: their books are bursting at the seams.
Wage Pressure, But Still Big Hurts
Almost half (44%) of businesses say rising wages are the top hurdle when it comes to payroll. That’s a bit of a paradox because the same survey shows 32% of employers struggling to promote financial wellbeing in the office and 42% finding it hard to keep pay chats transparent. Even amidst a “bumper year” that shook up National Minimum Wage rules, the cost‑of‑living crisis keeps shaping what workers require and what firms can afford to give.
Employees: Feeling Short‑changed?
When SD Worx asked employees what mattered most in their paycheck, the answer was clear: money is the ultimate keystone of job satisfaction. Only 47% of the workforce feels content with their pay, 49% think their salary is competitive, and 52% believe they’re paid fairly compared to peers. A huge divide remains between what workers need to survive and what pay packs managers can realistically hand out.
Communication: The Missing Piece
Employees complain that they’re left in the dark about their rewards. Just 50% say they receive enough pay-related communication, and a whopping 25% feel they can tailor their benefits to fit their own preferences. Many firms still rely on one‑to‑one chats (32%) or official memo’s (22%), which usually miss the larger audience.
On the Horizon: Better Pay Talk
There’s a glimmer of hope. A majority (65.7%) of business leaders are ramping up time and tokens for reward communication short‑term, while 38% earmark it as a long‑term priority. SD Worx’s UK People Leader, Laura Miller, urges companies to cut to the chase: bring transparency, match benefits to real employee values, and let staff have a seat at the decision table. That means mixing cash, perks, and a listening ear to keep morale high and tenure sharp.
Bottom line—wage worries are burning through budgets, employees are feeling overlooked, but if firms start talking openly, empathically, and with a dash of humor, the cost‑of‑living storm might just become a bluster of the past.
