CBI head calls for wage growth to reflect economic growth
British companies should do everything they can to increase to increase staff wages in line with the gradual economic improvement we have seen recently, according to the head of the Confederation of British Industry (CBI).
John Cridland, director-general of the CBI, described the amount of British workers who are currently being paid the minimum wage as a “serious challenge” and suggested that the government and wider companies should be working closer together to address this.
Mr. Cridland’s annual New Year message underlined the point that collective wages should improve alongside the recent economic growth which we have seen across the UK.
“As the financial situation of many firms begins to turn a corner, one of the biggest challenges facing businesses is to deliver growth that will mean better pay and more opportunities for all their employees after a prolonged squeeze,” exclaimed Cridland.
An increase in overall workforce sizes is expected among many firms this year for the first time since the recession began approximately five years ago. As the wider economy begins to gradually return to a more prosperous platform, the workers involved will be keen that their role in the process is sufficiently rewarded.
A great deal of restructuring and re-building has gone on within companies of all sizes across the UK, whether they were SMEs or larger firms.
It is vital for general morale in these companies that they feel included in the recovery and Cridland is keen to emphasise this.
Mr. Cridland also cited the value of firms doing more to create the chance for progression within the business alongside wage increases.
He suggested that additional training and development were vital as the economy increasingly moves to a point where an emphasis on “higher value and higher skill” exists. Many people are likely to value the opportunity to increase their skills-set more than they value an initial rise in wages.
By Phil Smith