Written by Firmin Zocchetto, CEO and co-founder of Payfit
New research from Payed reveals that nine out of ten British workers (89%) are not satisfied with their current salary, admitting that this is not enough for their needs; A feeling that intensifies after the government has announced a series of cost reduction policies in its Spring.
The address of Chancellor Reeves reported more difficult economic times to come, describing significant well -being reductions and ministerial expenses – potentially leading to public sector job reductions or to a reduction in the services on which workers count. Inflation was also to increase, which could peak at 3.8% in July 2025, while the increase in NIC rates of the employer from 13.8% to 15% should come into force in April.
With a British worker out of four concerned about their salary, their salary will not follow the pace of the cost of living, these policy changes – combined with the increase in water and energy bills, the end of household support plans and an increased stamp threshold for first buyers – should deepen financial concerns.
The results – drawn from a survey * from more than 2,000 adults who work – highlight an increasing gap between wages and financial security.
Dissatisfaction intervenes as British employees would have Work for longer hours than their European counterparts, while almost a third of workers (30%) want their salary better to reflect the work and the efforts they have put in the role.
Despite an increase in the national minimum and disappointed salaries aimed at increasing the profits of poorly paid workers, there are still many unhappy with their current salary.
Research continued to reveal that 37% of all workers say they need a salary increase to better manage their financial objectives, while 31% say that the cost of living would reduce more available income to save. However, with the rise of the NIC to increase the financial pressures of companies, employers may need to carefully assess their labor costs, which could influence wages growth.
“With the economic adjustments announced in the spring declaration, including spending reductions, potential employment reductions and the increase in inflation, many employees are ready to feel compression,” explains Firmin Zocchetto, CEO and co-founder of Payfit. “This means that, unfortunately, salary increases seem even less viable, and that the current climate will become even more difficult for many British workers. In this perspective, coupled at the high levels of dissatisfaction and concern around the remuneration shown in our research, it is clear that employers must consider the way in which they can support and reward staff and promote well-being. On essential services, options to sell unused holidays, free food and drinks and subsidized trips – can all help stimulate morale and help facilitate pressure on cost of living. »»
In addition to the demonstration of a case to re -examine the remuneration strategies, the results also reveal a transparency of remuneration transparency. 38% of workers said that unclear remuneration communication directly erodes their confidence in management – to put companies at a significant risk of damaged loyalty and drop in morale. This occurs because only 16% fully trust their employer; A statistic that falls at only 12% for workers aged 18 to 24.
Zocchetto adds: “Another clear discovery of our research is that the unclear remuneration communication erodes confidence, in particular among young employees who are already struggling with problems of financial literacy. It is only by improving transparency concerning remuneration and by offering better education and a better understanding of the way of stretching the salary, can we make sure that workers feel both appreciated and supported through these difficult times. “
