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
C-Suite positions are rarely advertised. Here’s why and how you can win them.

C-Suite positions are rarely advertised. Here’s why and how you can win them.

Have you ever wondered why you hardly see job adverts for top-level executive positions?   It’s not just because these roles require a very specific set of skills and experience; there are several pretty good reasons behind it.   Let’s discuss and uncover how you can get onto the path to the C-Suite.   Why […]
7 Ways to Communicate Better

7 Ways to Communicate Better

Are you a leader?   According to a Gallup survey, 70% of employee engagement is tied to the quality of communication from leadership. Communication is vital for driving organisational success. Whether you’re leading in a hybrid, remote, or full-time office environment, honing your communication skills is key to fostering engagement and collaboration. To help you […]
Is recruitment automation alienating top talent from you?

Is recruitment automation alienating top talent from you?

The rise of recruitment automation has undeniably streamlined many aspects of the hiring process. However, as technology continues to advance, a growing concern is emerging: the potential loss of human connection. Today’s top talent is increasingly feeling disconnected and undervalued as they navigate an increasingly automated job search. This disconnect is a significant risk to […]
8 Ways to Keep a Job Search Going Over the Summer

8 Ways to Keep a Job Search Going Over the Summer

Are you seeking a new opportunity this summer? During this time of year, you will want to spend quality time with friends and family. How can you balance work and play effectively when looking for a new role? We share our top 8 tips for keeping a job search going over the summer:   Review […]
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. […]
How to Get Your CV Right

How to Get Your CV Right

Finding a new job requires a large amount of time and dedication, we spend a lot of our time at work so securing a job carrying out important tasks that you enjoy alongside people that you like collaborating with at a salary that fits with your lifestyle is important. Then we must consider the commute, the hours, the benefits, the industry and prospects, the list goes on.
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 […]
Changing Perceptions of Temps: Your Solution for Talent Challenges

Changing Perceptions of Temps: Your Solution for Talent Challenges

Changing Perceptions of Temps: Your Solution for Talent Challenges Are you facing talent shortages or pressing project deadlines? Let’s talk about how temporary staff can be the game-changing solution you need. In the UK alone, 1.3 million talented individuals are stepping into temporary roles daily, bringing a wealth of experience and a commitment to delivering […]
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 […]
3 Business Leadership Skills You Need to Hire in 2024

3 Business Leadership Skills You Need to Hire in 2024

In the fast-paced and ever-changing business landscape of 2024, hiring the right leader is critical to organizational success.   As Deloitte found, businesses with a culture led by great leaders were 12 times more likely to have high business performance.   But you’ve got to know what to hire! And that can be difficult to […]

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