Economy
THREE quarters of managers (72%) would like to give their employees a pay rise this January for their hard work – but more than half (25%) have been told by business leaders that they do not have the budget to do so.
A further 25% of managers stated that bonuses are ‘unlikely’ at the end of the year. Of those companies who will be giving bonuses, two thirds have stated it will be ‘much less’ than what they had promised at the start of the year.
The findings come from the global talent solutions business – Robert Walters recently launched Salary Survey 2025 – which outlines what professionals can expect from their compensation packages in the new year.
Samantha-Jane Gravett – Managing Director from Robert Walters comments:
“Managers are caught in a tough spot – they recognise and want to reward their teams’ hard work, but tight budgets are tying their hands. This highlights the growing need for businesses to get creative in retaining top talent as we head into 2025 – from flexibility, and wellbeing benefits, to more purpose-driven work and formalized career paths.”
Transparency top of the agenda
Over half of professionals (56%) are expecting a pay rise in the New Year, with a further 43% also under the assumption that they are still on track for a bonus.
When asked what their employer could do better in the coming year when it comes to business and financial updates, more transparency (56%) was top of the agenda, followed by speedier communications on important matters (30%), and involving employees in decision-making (14%).
Samantha-Jane Gravett adds: “Following what has no doubt been a year of difficult business decisions, employees will be demanding even greater clarity and transparency in 2025. Employees are very aware of the economic climate, and with a slew of negative stories in the media around mass redundancies or job cuts – employees will want to know where they stand. Being honest and involving employees in their career journey will be a vital retention tactic.”
Hope in the New Year
A quarter of managers have not ruled out spot bonuses or mid-year pay rises in 2025 – with 70% stating that positive changes to employees’ compensation packages is likely if Q1 is ‘strong’ on the business performance front.
However with 72% of professional stating that they are looking for a new job in 2025 – in the Robert Walters poll – businesses may have an exodus on their hands if pay rises come too late.
Samantha-Jane Gravett adds: “In addition to increasing non-financial related benefits (where possible), businesses should also revise their timelines on pay reviews so that they don’t leave their employees hanging in the lurch. Where new year and mid-year pay reviews are the norm, businesses should consider quarterly pay or bonus reviews – particularly if they were unable to give the anticipated end of year bonus or pay increase.”
15th January, 2025.
C.E.
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