The August ONS Labour Market statistics focused on the average weekly earnings from April to June 2022. Growth in average total pay, including bonuses, was found to be 5.1% over this period, while regular pay growth, excluding bonuses, was 4.7%.

In real terms, namely adjusted for inflation, growth in total and regular pay fell year-on-year, at 2.5% and 3%, respectively – a record fall for regular pay and a sign of the growing cost of living squeeze.

Chris Lawton, Regional Managing Director at Robert Half, said: “Wages will inevitably continue to rise in the current climate but striking a balance between business and staff needs is vital. Robert Half recognises most medium to large businesses agree that the cost-of-living squeeze has the potential to push employees to seek higher salaries elsewhere if they don’t address it. Retention is key, and if employers aren’t keeping up with rising expenses and adjusting salaries or bonus structure, then they risk losing top talent.”

Consequently, the pressure remains on employers to find new and innovative ways to present themselves as the employer of choice to prevent their talent leaving. Good benefit packages, flexible working, a supportive culture and development opportunities within the business continue to be important to both attract and retain staff.