New Model Reward Research: Rising house prices put pressure on employers to increase pay

Rising house prices are putting the biggest pressure on the need to increase pay according to New Model Reward research 2017, a report produced by REBA in association with JLT Employee Benefits.

It showed that one in four (25.1%) of respondents said that rising house prices were putting pressure on employers to increase base pay. It makes it the biggest external influence on pay strategy outside of government legislation.

The figures come as the latest Housing Summary Measures Analysis from the Office of National Statistics, published in August 2016, shows that the median house price in England and Wales is now almost nine times the average salary, putting the housing ladder out of reach for many unless significant pay increases can be realised.

“This is a huge problem for both employers and employees,” said Debi O’Donovan, director at REBA. “Employees will be feeling the strain of trying to get on the property ladder which means they will in turn put pressure on employers to up their wages.”

Download the full 46-page PDF report here: New Model Reward research 2017. REBA members access the research for free.

For further in-depth discussion of this topic with senior HR and reward professionals, sign up for REBA's Reward Leaders' Forum on 27 April 2017. REBA Members can attend for free.