A large proportion of employers are predicting that pay outcomes will remain steady next year. Almost three-quarters (72%) of the 95 organisations that took part in IDR’s recent survey, ‘Planning for pay in 2027’, anticipate that their 2027 pay award is likely to be at the same level as this year’s, though a further 18% are forecasting a slightly lower increase. The latest findings build on those of last year’s survey, when 63% of respondents planned an award for 2026 which was likely to be at the same level as the previous year. Tougher trading conditions for some or even many firms are meeting inflationary cross-winds, leading to more difficult decisions and a greater likelihood of employers making the same or similar awards as they try to craft outcomes that will meet the perennial requirements of recruiting and retaining staff, as well as keeping them motivated. Meanwhile only 10% of employers believe that next year’s pay outcome will be higher than in 2026.
