Wages in medium-sized businesses are increasing as firms try to recruit and retain staff.
According to a survey by BDO LLP, over half of the 500 firms in its survey are increasing pay by between 4% and 8%, respectively, while more than a quarter are giving rises of 9% or more.
However, in London, almost 73% of businesses revealed they are increasing pay by over 9% or above.
As a result, businesses are tackling both rising costs and competition for workers.
READ MORE: Aldi increases employee pay for the second time this year
“The challenges facing these businesses, which are the engine of the UK’s economy, aren’t going anywhere soon,” BDO LLP partner Kaley Crossthwaite said.
“Inflation and rising costs have placed profound pressure on business leaders. It is particularly concerning to see businesses taking on additional loans and credit to manage costs – despite rising interest rates.
“However, it is encouraging to see businesses focused on increasing the inclusivity of their recruitment strategies, with many investing in apprenticeship schemes or actively recruiting from more diverse backgrounds.”
Crossthwaite added: “With warnings that inflation could reach 11% or higher by the end of the year and the ongoing competition for talent, businesses are going the extra mile to offer real support for employees grappling with the cost-of-living crisis.”
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