Wages up as firms fight to keep staff

MANUFACTURERS face a battle to attract and keep staff, causing some to hike wages by up to 14pc, according to a survey.

Make UK, which represents 20,000 companies, said inflation and staff shortages were piling pressure on the sector.

Just 2pc of firms are keeping pay flat this year, as against more than a fifth this time last year when the country was in lockdown. Two fifths boosted pay by between 2pc and 14pc and around half deferred decisions to see how inflation develops. While the highest increase, 14pc, was a big jump from last year’s 5.8pc, most workers will only see a pay rise between 2pc and 3pc – an effective pay cut with inflation predicted to hit 6pc by the spring.

Make UK’s Verity Davidge said: ‘While some companies clearly feel they need to reward staff for the last couple of challenging years, others are facing a battle to attract and retain key skills.’