Pay Increases Procrastination Resulting in Employee Departures? Four Out of Ten Employers Confirm
In the ever-evolving world of business, the 2025 Robert Walters Salary Survey has shed light on a pressing issue: the effects of delayed or reduced pay rises for professionals and white-collar workers. The survey reveals a concerning trend, with nearly half (45%) of employers surveyed either reducing or postponing salary increases, and 17% not issuing any raises at all.
Among these employers, 64% observed signs of employee disengagement, and 29% reported higher staff turnover as a direct consequence of pay delays or cuts. From the employee perspective, 72% of those who did not receive a raise are actively seeking new job opportunities, indicating sharply reduced retention. Even among employees who did receive raises, 58% felt their increases were below expectations, and 92% believed they were underpaid compared to the market.
These findings underscore the significant negative effects of delayed pay rises on employee engagement, morale, retention, and company culture. The survey highlights that business performance, budget constraints, and market uncertainty are the top reasons for withholding or reducing pay hikes. However, Robert Walters suggests that companies need to be mindful of the longer-term detrimental impacts of such compensation delays on workforce motivation and stability.
To mitigate these effects, employers are advised to use market data to inform compensation and complement pay with non-monetary incentives such as career development opportunities, flexible work arrangements, and internal mobility programs. By doing so, employers can bolster employee engagement and company culture, ensuring a more productive and stable workforce.
Sinead Hourigan, Global Head of CX, Commercial and Customer Experience at Robert Walters, emphasizes the importance of salary benchmarking and market insights. She notes that when salaries are constrained, culture and communication become more important than ever. In this regard, the Robert Walters Salary Survey provides up-to-date insights into pay levels and hiring trends to help leaders make informed decisions.
The survey also reveals a widening disconnect between employer decisions and employee expectations. Chris Eldridge, CEO of Robert Walters UK&I, stated that these decisions, while understandable, are not without consequence. He also noted that unmet expectations are pushing employees to reconsider their options.
In the face of cost control measures such as deferring or scaling back salary reviews, the organizations that succeed will be those that balance these measures with a thoughtful, market-informed approach to employee engagement. More employers are asking about retaining their best employees when pay increases aren't on the table. The survey underscores the need for employers to consider offering meaningful career development, flexible working arrangements, and internal mobility pathways to retain their valuable employees.
In conclusion, the 2025 Robert Walters Salary Survey clearly associates delayed pay rises with increased employee disengagement, lowered morale, elevated turnover rates, and a worsening company culture within professional and white-collar workforces. By understanding these impacts and taking proactive steps to address them, employers can foster a more engaged, productive, and stable workforce.
- In the realm of business, delayed or reduced pay rises for professionals and white-collar workers, as indicated by the 2025 Robert Walters Salary Survey, can lead to increased career explorations among the affected employees, with 72% actively seeking new job opportunities.
- To ensure successful business performance, despite budget constraints or market uncertainty, employers are advised to complement pay with non-monetary incentives, such as career development opportunities, flexible work arrangements, and internal mobility programs, in order to boost employee engagement and company culture.
