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With recruitment issues becoming a concern, employers are responding by increasing pay, providing more flexible roles and offering more progression opportunities.

The CIPD’s latest Labour Market Outlook surveyed 1,000+ employers, looking into hiring, pay and redundancy intentions for Q1 of 2022.

According to the findings, as many as 70% said that they plan to recruit, while just 11% are looking to make redundancies.

Employers predict making pay awards of 3% in order to combat rising recruitment and retention issues.

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Jonathan Boys, labour market economist for the CIPD, said, “Even though businesses anticipate making record pay awards to their employees this year, most people are set to see their real wages fall against the backdrop of high inflation.

“What is encouraging is that more employers are looking beyond pay increases to help attract and retain staff by providing more flexible working opportunities and investing in more training and development, as well as taking steps to support employee health and wellbeing. Together these practices can broaden the range of candidates employers can attract and may also reduce the need to recruit more staff, which should reduce wage inflation pressure to a degree.”

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