Almost half of London firms plan to offer pay increases in 2024

New research shows that nearly half of firms in the capital plan to offer a salary increase in the next 12 months.

Robert Half’s 2024 Salary Guide, which analyses and reports on market salaries, hiring trends, and skills requirements across the UK, also revealed that 28% of London businesses intend to offer pay rises in line with inflation.

According to the findings, London recruitment activity is set to pick up next year with 41% of respondents indicating plans to expand headcount.

However, 34% did indicate that their recruitment activity is at risk due to being unable to offer competitive salaries compared to other firms.

Philip Boden, Market Director of technology & Financial Services, at Robert Half, said, “Skills shortages in the capital remain rife and employers are increasingly turning to financial incentives to attract and retain staff.

“However, pay inflation isn’t sustainable and firms need to consider how else they can boost hiring prospects and reduce attrition, including offering career development opportunities and maintaining flexible working options.

“With career progression another driver of candidates, it’s crucial that employers look at developing a broader recruitment package that is attractive beyond pay if planned headcount targets are to be met.”

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