Partner Article

UK at the bottom of the wage table

The UK’s Trade Union Centre (TUC) has reported that in the past eight years, real wages in the UK have fallen by 10.4%. This is the biggest fall in real wages since the financial crisis than any other advanced OECD country, apart from Greece, and leaves the UK equal bottom in a league table of wage growth. Over that same time period (2007-2015) real wages grew in other countries such as Poland, Germany, France, and on average real wages across the OECD increased by 6.7%.

“With a consistent drop in wages, businesses in the UK are facing a continuous battle to keep a workforce motivated and engaged,” said Derek Irvine, vice president of client strategy and consulting at Globoforce. “Furthermore, with Brexit looming, there is even more uncertainty about future job earnings.”

Irvine continues: “Whilst before the financial crisis, businesses often relied on boosting wage packets to increase productivity and reduce staff turnover, this has changed over the last eight years. The good news is that, while wages are certainly an important part of working, for many employees, loyalty isn’t linked to money, but to feeling valued. To improve motivation, businesses need to focus less on basic needs such as pay and more on boosting morale, motivation, and belonging. When staff feel underappreciated, then are likely to become increasingly unproductive and disengaged – both from their work and company – which can lead to them moving elsewhere.

“It’s therefore important for businesses to look at alternative ways of keeping their employees happy. We are seeing many organisations get better at aligning their pay and rewards strategies with the motivational and cultural needs of the modern workforce, which is key. However, businesses also need to consider implementing social recognition, which enables everyone in the company - not just managers - to recognise an employee’s ongoing work achievements and positive behaviours. With a proven return of investment, implementing peer-to-peer feedback allows employees to be consistently recognised for their efforts, which creates a more engaged, dedicated workforce that allows them to see the value that they add to their colleagues and the entire organization – something money simply cannot buy,” concludes Irvine.

This was posted in Bdaily's Members' News section by Globoforce .