2023 cost-of-living support plans revealed by Peterborough employers

March 30, 2023

The Greater Peterborough Pulse Survey – a recent survey of employers across the Peterborough region – has shed light on cost-of-living support plans, as well as expected pay increases, recruitment and retention challenges and employee turnover for the remainder of 2023.

The survey revealed that providing additional cost of living support was considered a key focus for employers, with 17 per cent of respondents even considering a lump sum, non-consolidated pay-out to staff. The average cost-of-living lump sum payment is expected to be £500 per person. Interestingly, 81 per cent of those surveyed planned to or were already offering financial advice, information hotlines or educational resources as part of their cost-of-living support for employees. 56 per cent of employers surveyed said they were also actively supporting working from home to help reduce employee travel costs.

The survey also revealed that pay award expectations for 2023 will see salaries rise by an average of five per cent according to employers, with 20 per cent reporting an expectation that these increases could be seven per cent or more.

39 per cent of those surveyed indicated that pay rises would be distributed through a combination of across the board and individual increases. 25 per cent of businesses also revealed that they would be bringing scheduled pay reviews forward by two months in 2023.

However, the ongoing recruitment and retention challenges facing local employers were also exposed by the survey. Exacerbated by the difficulty in keeping pay budgets in line with rising inflation means that employers are facing ongoing pressures of balancing staff costs and support with their own rising operational costs.

50 per cent of Greater Peterborough employers confirmed they had experienced challenges in retaining staff over the past 6 months, and 62 per cent faced similar challenges when it came to recruiting new team members.

In fact, 53 per cent of Greater Peterborough employers admitted they have offered new starter salaries that are up to 10 per cent higher than those of existing employees at the same level, whilst 47 per cent have offered salaries to new hires that are up to 20 per cent higher, a new survey has revealed. Furthermore, 48 per cent of respondents expected the need to pay a premium for new recruits to be an ongoing reality for the next six months.

Nel Woolcott, Anne Corder Recruitment Managing Director said: “The latest survey has provided some fantastic insight into Greater Peterborough’s employers and the many challenges they are facing when it comes to retaining their current employees and recruiting new talent.

“The fact that most of the local employers surveyed expected to offer a five per cent increase in salaries, with one in five estimating this to be as high as seven per cent, means that affordability and sustainability need to very much be part of recruitment and retention conversations and decisions this year. There is a balance to be struck between attracting the right talent and retaining valuable employees to mitigate staff attrition within a business or team.”

Tim Kellett, Paydata Managing Director, commented: “We are witnessing more companies wanting to be transparent in how they set pay, using accurate market data to inform pay and reward decisions and ensure there is a science to the approach. An objective and evidence-based method of setting pay helps reassure people that they are being paid fairly, in the hope of stabilising retention challenges and attracting future talent.”

The Greater Peterborough Pulse Survey was conducted between 11 January and 20 February 2023, by Peterborough-based recruitment firm, Anne Corder Recruitment, and Paydata, a local reward management consultancy. The results represent the plans and expectations of 30 employers across the Greater Peterborough area.

Click here to download a visual of the data.