2022 UK Study: Employer One-Off Payments

Author

Damian Carnell
January 09, 2023

In reply to the sudden and major economic strands comprising the cost of living crisis of 2022, a number of companies paid their employees a one-off amount in addition to their regular pay rise.

In late 2022 surveys by both the CBI and CIPD flagged that this practice is likely to be seen in 2023 - alongside both the regular pay rise, and other interventions such as enhanced benefits and accelerated pay review dates.

The linked CORPGO study examines the profile of 27 companies operating one-off pay or bonus arrangements in 2022. It also flags some longer-term implications.

2022 UK Study: employer one-off payments - CORGRO

2022 UK Study: employer one-off payments

https://corpgro.co.uk/blog/2022-uk-study-employer-one-off-payments/

Prices do not drop when inflation slows or stops. They just stop rising as fast as before. So, the expected 2023 inflation slow down will be welcome for many, but for most low paid and many middle paid employees, the cost of living crisis will continue this year.

Companies too often face economic headwinds, so how the 2023 pay budget is set and allocated is even more important than in prior years.

Money worries often add strongly to worker stress, with knock-on physical health, and productivity implications. Employers have both a moral and a sound financial motive to engage with this problem.

In addition, investors are asking that executive director pay rises are set below that of the workforce overall in 2023. Restraint is the watchword for both the Investment Association and ISS for example. This was mentioned in our email "Between a Rock and a Hard Place" recently.

Between a Rock and a Hard Place - CORGRO

What’s the Story? The FT reported last week that UK companies are preparing for battle with investors over executive pay. Subscribe to read | Financial Times News, analysis and comment from the Financial Times, the worldʼs leading global business publication www.ft.com Leading institutional shareholders and proxy advisory advisors such as ISS and The Investment Association … Between a Rock and a Hard Place Read More »

https://corpgro.co.uk/blog/between-a-rock-and-a-hard-place/

Please get in touch if you would like to discuss the implications for your business.

If you wish to contribute any news examples or similar practices or thinking in your business, we would be delighted to hear from you.

It seems that 2023 is likely to become a very sensitive year for pay arrangements, from bottom to top.

CORPGRO Helps Companies With:

Please feel free to email or call:

Damian Carnell - [email protected] +44 (0) 7989 337118

VA Bec Bostock - [email protected]

Please share this CORPGRO information with your board or your colleagues.