Three quarters of West Midlands SMEs planning pay rises in 2015
AS many as three quarters of SMEs in the West Midlands plan to give their employees a pay rise in the next 12 months, according to a new survey.
Of that number, 25% of firms said that workers would receive a rise while 51% said the increases would be decided on merit.
The 75% figure is slightly above the UK average of 74% but behind London and the South East, where 80% and 81% of firms said they were planning to give workers a salary increase.
That so many firms are contemplating rises suggests more confidence in the SME sector and the economy in general.
The figures come from the most recent Close Brothers Business Barometer, a quarterly survey that canvasses the opinion of SME owners and senior management from a range of sectors across the UK on a number of financial and economic issues.
Mike Randall, CEO of Close Brothers Asset Finance, said: “It’s encouraging that so many businesses in the West Midlands appear to be optimistic and in a financial position to reward their employees with an increased pay packet.
“While on the surface this is good news for workers across the region, we should be aware that the Bank of England is watching pay closely, as an indicator of when the right time will be to increase interest rates.
“They’ve also warned that unless wage increases are accompanied by a rise in productivity then they will have to move more quickly on rates as inflationary pressure mounts.”
The Business Barometer also revealed that 81% of business owners surveyed in the West Midlands are optimistic about their prospects for the year ahead, with almost half confident that their business will expand during 2015.
