Speaking to FoodManufacture.co.uk in this exclusive podcast, Roger Martin-Fagg, of Ashridge Business School said: “It’s one of those paradoxes. What makes sense for the individual business often doesn’t make sense for the economy.
Wages growing at 3% plus
“For the economy we want to see wages growing at 3% plus this year, but of course that puts margin pressure on individual businesses.” A tendency to “award the minimum” would not be enough to maintain staff, he added and said employers must increase pay as much as they can.
If companies can afford to pay more money to their employees, it will bring benefits to the business in the long-term, although it would not feel like that in the short-term, he said.
Meanwhile, visit Foodmanjobs to view the latest career opportunities in the sector.