The Future of Customer Service Jobs in the UK
4th December 2023
When prices for goods and services rise, employers may feel compelled to raise salaries in order to maintain employees’ purchasing power. However, despite concerns about inflationary pressures, wage growth has remained relatively subdued in the UK over the past few years. What does this mean for your business, and more importantly, your employees?
One of the key features of the UK economy in recent years has been the lack of wage inflation in spite of strong economic growth and low unemployment. This puzzle has puzzled economists and policy-makers alike. There are a number of potential explanations for this phenomenon.
One possibility is that technological change has led to a ‘reshoring’ of manufacturing jobs, which has put downward pressure on wages. Another possibility is that the UK’s flexible labour market has made it easier for employers to adjust to changes in demand, without passing on the cost to workers in the form of higher wages. Whatever the cause, the lack of wage inflation has had important implications for economic policy.
In the UK, wage inflation has been relatively low in recent years, even as general inflation has risen. This has had a number of impacts on the economy. Firstly, it has put pressure on household budgets, as workers have seen their real wages decline. This has made it difficult for many people to keep up with their monthly expenses. Secondly, it has led to increased inequality, as those at the top of the income ladder have been able to maintain their purchasing power while those at the bottom have struggled to do so.
When the cost of living goes up, workers expect their wages to keep pace. Otherwise, they may look for other work that pays better. The same is true when competition for jobs is fierce; employers may have to offer higher wages to attract and retain good employees. And when the supply of skilled labour is low, workers can command higher wages because companies are willing to pay more to get the talent they need.
In order to keep up with attracting the best talent in the industry and stay relevant as a business in the UK, it’s vital for employers to increase their employees’ and new recruits’ salaries or offer remote work.
Visit Headway Recruitment for more advice.