More than eight out of 10 employers (83%) claim that inflation is having an impact on how they pay their staff, according to a report by Croner Reward.
Organisations blame public-sector pay agreements, trade unions and skills shortages for staff successfully influencing salary negotiations.
The survey found most employers (70%) gave pay rises higher or in line with last year, with the basic pay rise across the board averaging between 2% and 4%.
Looking to the future, 32% intend to pay bigger rises next year, although a quarter said they would give smaller rises.
Employers said the need to retain staff rather than go through a costly recruitment process was a factor in their pay decision with more than half (53%) explaining skill shortages were having an effect on pay awards in their organisation.
Employers under pressure to agree pay rise demands
Employers are feeling the heat from staff demanding pay rises to offset rising fuel costs.
