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
How to Run a Successful Recruitment Campaign

How to Run a Successful Recruitment Campaign

Do you struggle to get the people you need to accept your job offers? It’s a common problem and stems from a simple lack of understanding of managing a complex recruitment strategy that, instead of saving you time and money, does the opposite, leaving you with more work than you started with and still no […]
Executives, here are 9 ways to create a world-class personal brand

Executives, here are 9 ways to create a world-class personal brand

Your personal, professional brand. The strengths, characteristics, and achievements others remember you for.   It is an important deciding factor in how promotions and career opportunities play out.   But creating that brand and keeping it consistent is difficult — potentially more so than ever before.   Why does your brand matter in 2023?   […]
Why leadership coaching is proving to be a game-changer in 2024

Why leadership coaching is proving to be a game-changer in 2024

The business landscape is evolving at breakneck speed, placing unprecedented demands on leaders. Today’s successful executives must be agile, empathetic, and digitally savvy. This perfect storm of requirements has created a leadership gap that many organisations struggle to fill.   At Yellow Bricks, we understand the challenges of finding, nurturing, and retaining top-tier leadership talent. […]
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 […]
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 […]
Benefits of Hiring Temps: Building Strategic Resilience with EOR

Benefits of Hiring Temps: Building Strategic Resilience with EOR

Beyond Uncertainty: Leveraging Strategic Interim Infrastructure for Resilience The era of reactive hiring is over. While the traditional view of flexible talent focused on “filling gaps” during periods of uncertainty, the modern C-Suite views agile talent as a tool for Strategic Resilience. At Yellow Bricks, our 23 years of experience have shown that in a […]
AI-generated fake job applications

AI-generated fake job applications

Tackling Fake Applications: Streamlining Your Recruitment Process for Genuine Candidates In today’s fast-paced hiring landscape, the rise of AI-generated fake job applications poses a significant hurdle for recruiters and hiring managers. These fraudulent submissions not only clutter your recruitment process but also drain valuable time and resources that could be directed toward finding genuine candidates. […]
Don’t Burn Your Runway: Smart Hiring Strategies for Founders After Investment

Don’t Burn Your Runway: Smart Hiring Strategies for Founders After Investment

Developing A Post-Investment Hiring Strategy That Delivers Securing investment is one of the most exciting milestones in a founder’s journey. Whether it’s seed, Series A, or a later funding round, it signals that others believe in your vision and are backing you to grow. But with investment comes pressure. Investors expect progress, teams expect momentum, […]
Is this the real reason your people are leaving?

Is this the real reason your people are leaving?

We know that replacing key talent is a lot of work; when done badly, it can cost a lot of time and money.   Plus, the initial time, energy, and investment spent on hiring talent means it’s important to have effective retention strategies in place.   We polled 500 HR and people leaders, and 72% […]

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