Wages Rise, but Real Gains Slow: What Does This Mean for Your Workforce?
Career

Wages Rise, but Real Gains Slow: What Does This Mean for Your Workforce?

Wages Rise, but Real Gains Slow: What Does This Mean for Your Workforce? The UK’s economic landscape in 2024 has been marked by significant inflationary pressures. While wages have increased by 4.8%, inflation-adjusted growth has slowed to just 1.9%. Despite nominal pay rises, the rising cost of living continues to erode purchasing power for many […]

December 12th, 2024
*

Abby.

Founder

A search expert making key hires for over twenty years.

Wages Rise, but Real Gains Slow: What Does This Mean for Your Workforce?

The UK’s economic landscape in 2024 has been marked by significant inflationary pressures. While wages have increased by 4.8%, inflation-adjusted growth has slowed to just 1.9%. Despite nominal pay rises, the rising cost of living continues to erode purchasing power for many workers.

As a result, businesses are under mounting pressure to manage costs, retain top talent, and remain agile. In this climate, understanding the benefits of temporary staffing is more critical than ever.

The Impact of Inflation on Businesses

Inflation doesn’t just affect individuals it reshapes the business landscape. Higher costs across energy, raw materials, and payroll are squeezing profit margins and dampening consumer demand.

In response, forward-thinking organisations are reassessing their workforce strategies. One of the most practical, cost-effective adjustments companies are making? Embracing the benefits of temporary staffing.

The Role of Temporary Staffing in Uncertain Times

In today’s economic climate, adaptability is key. Integrating temporary staff into your workforce can offer a powerful advantage. Here are some of the most impactful benefits of temporary staffing:

  • Enhance Flexibility: Scale your workforce up or down to meet seasonal peaks, sudden shifts in demand, or project-based requirements.

  • Optimise Staffing Costs: Temporary staff allow you to reduce long-term financial commitments, helping manage payroll budgets more efficiently.

  • Access Specialised Skills: Bring in expert-level support quickly for niche projects or urgent needs without the delay of permanent recruitment.

  • Mitigate Risk: Trial potential hires in temporary roles before committing to permanent contracts, reducing costly hiring missteps.

When inflation limits your ability to offer large wage increases, the benefits of temporary staffing provide a cost-smart way to maintain productivity and business continuity.

Preparing for 2025: A Cautious Outlook

Looking ahead, employers face additional pressure with potential rises in National Insurance contributions and other overheads. These shifts could lead to increased redundancies or restructuring as businesses seek leaner, more flexible ways to operate.

This is where the benefits of temporary staffing shine even brighter. By strategically incorporating temporary staff into your 2025 workforce strategy, your business can remain resilient while navigating economic uncertainty with more control and confidence.

Partnering with Yellow Bricks for Temporary Staffing Success

At Yellow Bricks, we understand the evolving challenges businesses face in an inflation-driven economy. That’s why we work closely with our clients to deliver tailored, flexible staffing solutions designed to unlock the benefits of temporary staffing.

Whether you’re looking to reduce hiring risk, manage costs, or stay nimble in a fast-changing market, we’re here to support your success.

Book a call with us today to build a smart, sustainable 2025 talent strategy.

#UKJobs #WageGrowth #Inflation #TemporaryStaffing #FlexibleHiring #HRStrategy

To find out more about how to focus on your brand, get in touch today.
Want to hear about our other articles?
Sign up to the
Yellow Bricks Newsletter.
Looking to hire your next superstar?
Let’s discuss your project.
Keen to explore our latest vacancies?
Click here.
Yellow Bricks is a female-owned and led executive search firm hiring predominately for software companies with diversity and inclusion at the heart of our offering. To learn more, click here.
LinkedInPrint
Related posts
The Benefits of Team Lunches

The Benefits of Team Lunches

When it’s time for lunch, do you eat at your desk? 🥪 For most people, this is the case. Over 60% of workers say that they eat lunch at their desks. A lunch break should be a break from work to have lunch. Some of us are still not allowing ourselves or feeling able to […]
5 Ways to Craft a Stellar Onboarding Experience

5 Ways to Craft a Stellar Onboarding Experience

We’ve all heard the saying, “You never get a second chance to make a first impression.” It’s especially true when it comes to new hires. Their initial experience with your company sets the tone for their entire employment journey.   The stakes are high when it comes to onboarding. A recent survey revealed that only […]
First Interview Tips: 7 Simple Strategies for Success

First Interview Tips: 7 Simple Strategies for Success

Ace Your First Interview: 7 Proven Tips That Get Results! Improve your Interview Style, with these First Interview Tips: 7 Simple Strategies for Success. Navigating the job interview process can be a nerve-wracking experience, especially when it comes to that all-important first interview. It’s completely understandable to feel a mix of excitement and anxiety as […]
Why employee recognition is key to a happy team

Why employee recognition is key to a happy team

Could you be about to lose your star players?   Feeling valued is a core human need.   If attrition is high on your agenda, this could be the solution to retaining more of your key people.   69% of employees admit that recognition would keep them at their company, and with the average cost […]
The secret to leadership in 2024? The coach

The secret to leadership in 2024? The coach

The world of leadership is changing fast, and 2024 looks like it’s not going to stop. It’s seemingly not enough for leaders to rely solely on traditional management and leadership skills in a multigenerational, distributed, and increasingly complex workspace. Leaders must adapt, be creative, and show empathy in a world of constant change.   But […]
8 Steps to Getting Your Career Back on Track

8 Steps to Getting Your Career Back on Track

We know that a lot of the jobs we like the look of online are over applied to, probably phoney, in reality unsuitable, or were filled months ago with no one bothering to take them down.     In some sectors, the hiring markets are weaker than they have been in decades. Trying to navigate […]
The Evolution of Agility: Why EOR Infrastructure Outperforms Traditional Contracting

The Evolution of Agility: Why EOR Infrastructure Outperforms Traditional Contracting

The Evolution of Agility |  Why the UK Employer of Record Model is Essential for Interim Leaders The era of the “simple temp hire” is over. In a climate of tightening UK employment regulations and high-consequence growth, the traditional recruitment model has become a liability. For over 20 years, Yellow Bricks has evolved alongside these […]
The Future of Recruitment is Workforce Planning Partnerships

The Future of Recruitment is Workforce Planning Partnerships

Why Workforce Planning Partnerships Matter Workforce planning partnerships are the future of recruitment. By placing workforce planning partnerships at the heart of business strategy, organisations can anticipate needs, align people decisions with growth objectives, and avoid the costly cycle of reactive hiring. Recruitment is changing. The days of agencies competing to fill vacancies faster and […]
Work is changing. Don’t get left behind.

Work is changing. Don’t get left behind.

The world is changing, and so is the workplace 🌍 👔  From witnessing The Great Resignation, it is clear that now, more than ever, employees are seeking more from their jobs and the world of work is changing. Employers may be quick to assume a pay rise is the antidote.  However, in 2022, money is […]
5 Questions All Leaders Should Be Asking Their Teams

5 Questions All Leaders Should Be Asking Their Teams

70% of employees say their purpose is related to their work.   People who feel their work has purpose are often more satisfied with their professional lives and loyal to companies who advocate for their own lives and careers.   They are 69% less likely to plan to quit their jobs within the next 6 […]

People. Culture. Growth.
Yellow Bricks
Yellow Bricks © 2026