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Workers struggle to negotiate a pay rise

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As employers take stock of regulation and tax hikes following the Autumn Budget, data from Robert Half’s latest Jobs Confidence Index (JCI) – an economic confidence tracker produced in partnership with the Centre for Economics and Business Research (Cebr) – reveals that 70% of workers are finding it more challenging to negotiate a pay rise.

Despite 63% of workers saying that they are confident in their job security for the next six months, JCI data shows that after a year of pay exceeding inflation, the power is shifting back to employers as a slowdown in real wage growth emerges with the JCI recording an eight-point drop in the pay confidence pillar of the Index indicating that the tide is turning for workers.

Additional statistics from Robert Half’s 2025 Salary Guide, employers are seemingly less willing to further add to employment costs with increases to National Insurance Contributions (NICs) adding to financial pressures for businesses, workers are less likely to get the pay rise they want in the New Year.


“Workers have seen high wage growth in response to the cost-of-living crisis, which has led to a level of expectation among employees of continued pay rises.  The reality, though, is that many firms simply can’t sustain this, particularly with NICs set to increase,” says Matt Weston, Senior Managing Director UK & Ireland, Robert Half.

According to Robert Half’s research 44% of businesses plan to focus on improving productivity by implementing automation and digital transformation solutions in their businesses to enhance productivity, and a further 40% say they are planning to optimize workflow management.  “Given that the UK’s productivity levels have remained stubbornly low, we are seeing a growing number of companies looking at ways to streamline current operations and better utilize resources,” continues Weston.

“This is likely to continue until the economic climate settles from the recent upheaval we’ve experienced.  However, that’s not to say that workers will lose out overall.  The proposals in the Employment Rights Bill and a general recognition within the business community that advanced perks and benefits are a must in the modern world, mean that employees will reap the rewards beyond their pay packets.”