Compensation | Living Wage & NI Increases - Managing Salary Structure Compression

By Peter Brauer, CEO, Turning Point

The National Living Wage is a positive step towards fairer compensation, undoubtedly increasing living standards for millions of UK workers.

However, it is also important to understand the ripple effect that the increase creates for businesses. Combined with rising employers' National Insurance contributions, they will place a heavy burden on businesses of all sizes and sectors.

Salary structure compression is a consequence of elevating entry level pay and, if left unchecked, creates challenges within organisations. Employers need to balance wage increases with the commitment to maintaining competitive, fair salary structures.