The 2020 Pay and employment practices survey from the CIPD and IRN found that organisations continued to flex their approach to pay and benefits to respond to the dynamics of a challenging labour market. Less than half (47%) of those surveyed confirmed their plans to increase basic pay in 2020, with 27% planning to maintain basic pay rates and a quarter yet to make a decision.

Among those planning pay rises, the forecast is an average increase of 2.8%. However, it's likely to be higher for companies employing from 50 to 250 employees. There is evidence of a willingness to consider additional compensation to deal with talent sourcing and retention.

According to nearly two-thirds of organisations, the tight labour market and pressures of attracting and retaining suitable employees were the big external influences on pay setting for 2020, with much stronger influences than Brexit at 18% and the housing/rental market at 22%. Company performance/profitability remained a key determinant of pay increases.

The survey also addresses collective bargaining, gender pay gap, and retirement and pension practices.

The survey data was collected in January 2020, before the onset of the COVID-19 pandemic.

CIPD-IRN private sector pay and employment survey 2020

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