Weak pay growth prompts fresh productivity warningThe typical pay rise for UK workers has been 2% for two years running, with almost half unsatisfied with their employer’s decision, according to a new report.CIPD, the professional body for HR workers, warns employers that they must invest more in training and communicate better with workers about pay if they want to see gains in productivity. Its survey with YouGov of 2,255 workers found more than half, or 53%, received a pay rise in 2014, compared with 51% in 2013 while almost two-thirds are optimistic about getting another rise this year.The poll found 48% were not satisfied with their employer’s pay decision and more than three-quarters of staff had not been told what they must achieve to get a pay rise in 2015. Just a quarter agreed that their employer was giving them the training needed to increase their earnings in the future.The CIPD joins other labour market experts in warning that the UK has a long way to go in improving its weak record on productivity, a measure of output per worker, or hour worked.“This month, many employers will be spending a lot of money on increasing their employees’ pay as part of their annual pay reviews. But to get a return on this investment our research suggests that employees are more likely to be satisfied with the outcome if the organisation takes the time to explain the reasons behind it,” said Charles Cotton, performance and reward adviser at the CIPD.
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