There’s been lots in the news recently about salaries and pay awards. The Banking sector has been in the news again, it was reported that Barclays has put aside some £900m to cover potential claims for miss-sold PPI. Currently a substantial chunk of Bankers remuneration is paid as bonus. Reports are that going forward a proportion of this award may be ‘held back’ for a period of up to 7 years and potentially ‘clawed back’ if the employee is subsequently found responsible of recklessness or negligence – even if the money has already been spent! Do we think this is fair? Could this lead to us losing talent in the UK in favour of employees transferring to other Banks in other countries across the world?

 

For many of us, after some 6 years of falling incomes and zero pay increases there seems like there could be a light at the end of the dark tunnel. Reports are saying that workers are due an above inflation rise!

Some estimating salary hikes of 3.5% whilst recruitment agencies are seeing record rises in the salaries being offered to new employees.

With the anniversary of World War 1 we have been researching how this compares to salaries in 1914 – one hundred years ago – this is what we found: –

  • A Serviceman’s basic wage in World War One was one shilling a day (5 pence)
  • It was reported that war workers (predominantly women) earned more in piecework in the munitions factories than the average soldier!
  • A pint of milk and a loaf of bread each cost 1d (1/12th of a shilling circa. ½ pence)

What have been your experiences?  We’d like to hear your views.

Are you seeing positive changes to remuneration and rewards in your own companies?

With talks that interest rates might also be on the increase – is this too little too late?