In total, 63% of housing association respondents to the fourth annual Barometer Pay Survey – run by reward specialists twentysix consulting and social enterprise HR consultancy Real People – said they had some form of bonus or variable pay scheme available for staff. This is compared to less than a third of homelessness and care providers.
In addition, four out of five are predicting pay rises in 2015 and there has also been an increased use in the Living Wage across the sector over the past 12 months (62% of respondents in 2014, an increase of 16% from last year).
Other key findings from the Barometer are:
- Pay rises for housing associations are likely to remain stable for the third year in a row, at a median of 2%. Those for homelessness and care providers show a moderate increase from previous years, with a median of 1%.
- 31% of organisations predict that they will have to undergo a pay freeze in 2015 – a drop of 10% from 2014.
- The Living Wage is spreading across the sector, particularly outside London. In total, 62% of all respondents – and 57% of those based outside London – have already introduced the Living Wage.
- Half of survey respondents have either never undertaken an Equal Pay Audit or not done one in the past five years and less than 40% have undertaken one in the past three years.
Rachel Crafts, Managing Partner at twentysix consulting, said the results reflected her own experience of reward strategies in the sector.
“In an era of only modest pay rises, organisations are having to think creatively about how they can attract and retain key talent, especially within the context of increased commercialisation across all parts of the sector.”
Luke Watkeys, Business Manager at Real People, said the Barometer highlighted the positive impact the Living Wage was having across the sector.
“It’s been another tough year for the social housing, homelessness and care sector and it is no secret that there will be further financial issues ahead as local authorities are forced to make even more funding cuts.
"However, it is promising to see organisations increasingly utilising the Living Wage. This is something that, as an ethical HR consultancy, we are delighted to see and we encourage all organisations to pay at least the Living Wage to all their staff.”
The 2014-15 pay results have been released by twentysix consulting and Real People as the first of two Barometer surveys comes to a close. The survey aimed to answer the question, “Is the sector on the brink of embracing bonuses?” and 58 organisations took part in total.
The second Barometer of 2014-15 is due to be released on 16 February 2015 focusing on HR trends and practices in the sector. To register your interest in this survey, please contact Real People at firstname.lastname@example.org.