Research has found that this acceleration won’t continue as pay awards have reached their peak for now.
Pay awards in the second quarter of 2021 have doubled compared to those in the first quarter of the year.
However, recent data has revealed that this acceleration won’t continue as they have reached their peak for now.
According to XpertHR, in the three months to the end of June 2021, pay awards were worth a median two percent, remaining steady and unchanged for three consecutive rolling quarters.
The spike over the second quarter of the year is therefore double those in the first quarter, with the median award in the three months to end of March 2021 recorded as one percent.
Over a year ago, the amount of pay freezes started to increase as organisations’ pay award plans in April 2020 started to waver.
Despite this, data suggests that since the summer of 2020 there has been evidence of a reverse, with proportion of pay freezes declining with every set of new figures each rolling quarter.
Sheila Attwood, pay and benefits editor at XpertHR, shared that it is encouraging to see an increase in pay awards as we navigate out of the pandemic.
“As we navigate the post pandemic world, organisations are understandably still being cautious in their approach to annual pay reviews, and whilst we have seen some growth from the awards made in the early months of the year, we are unlikely to see this level of acceleration continue,” she said.
“Despite this, it is still encouraging to see the proportion of pay freezes decline in 2021 as confidence returns.”
Based on details of 267 pay awards effective 1 April and 30 June 2021, the research also revealed that the number of pay freezes continue to decline, as the proportion of all pay reviews resulting in pay freezes has fallen, now accounting for 15.9% of all reviews in the current period.
In addition, XpoertHR shared that data continues to show slightly more than half (54%) of pay awards in the current period being worth less than the same group of employees received a year ago.
In fact, around 25.1% are at the same level as a year, while the remaining 20.9% of deals made a higher reward this year.