The CBI/Accenture Employment trends survey 2014, which questioned 323 businesses employing a combined total of more than 1.25 million workers, also found that 12% of respondents are planning to give pay increases above the RPI, while 15% are planning to give a general increase below this level.
In addition, 12% are planning to give targeted increases for some staff only and 8% will freeze pay.
The research also found:
- 74% of respondents believe an Independent Low Pay Commission should continue to take an evidence-based approach to setting the national minimum wage.
- 19% of respondents said the living wage should be mandatory, while 37% believe it should remain voluntary, and 40% that the focus should be on upskilling staff into better-paid jobs.
- 80% believe the outcome of the Employment Appeal Tribunal (EAT) regarding holiday pay calculations, will have a negative impact on employers.
Katja Hall (pictured), deputy director-general at CBI, said: “We want to see everyone enjoy the rewards of the economic recovery.
“Growth should work for everyone, and skills are the key route to ensuring that this happens through improved productivity and pay.
“Organisations and the government need to work together to find ways to develop skills within the workforce and help employees move into higher skilled and better-paid jobs.
”It is also clear that the minimum wage must be a clear and enforced legal base of pay, with the decision on its level made by the independent Low Pay Commission (LPC), to ensure it is free from political meddling.
”This way, the LPC can ensure wage rises as fast as possible without a negative impact on jobs.”