WORKERS in the Channel Islands are less likely to ask for a pay rise than their UK counterparts – and far less likely than the global average, a new study has revealed.
The figures have prompted a charity to encourage employees to ask for a rise in their wages, “especially in the current economic climate” where the rate of inflation remains at 10.1%.
The local research, conducted by Island Global on behalf of finance firm PwC, was compared against the results of its worldwide Hopes and Fears survey, which drew responses from 54,000 employees across 46 countries.
It found that a quarter (26%) of respondents from Jersey, Guernsey and Alderney planned to ask their employer for a pay rise, as compared to a third in the UK (34%) and the global average of 42%.
The report described the figure as “surprising”, noting that: “At the time of publishing, local inflation rates remain stubbornly high: so why aren’t the Channel Islands workers speaking up on pay? In some organisations there might be less of a ‘speak up’ culture meaning that employees may feel awkward asking for a pay rise for risk of a negative response. That could imply workers seeking higher pay might be more inclined to achieve this with a new employer.”
The local analysis was based on 563 responses from workers in Jersey, Guernsey and Alderney – across a range of industries and occupations.
Patrick Lynch, the chief executive of Caritas Jersey – which promotes the adoption of the “living wage” in the Island – said he agreed the figure was “surprising”.
However, he added: “Sometimes people here, especially those who have limited residential rights, feel that by rocking the boat they could put their employment at risk.
“We would encourage people to ask for a pay rise, especially in the current economic climate with inflation running at 10.1% and the cost of living remaining high – coupled with the rental increases we are seeing.”
The PwC report added that the Channel Islands “are competing on a global stage for talent”.
“It is no longer good enough to only benchmark total reward and employee value propositions locally. To remain an attractive jurisdiction which can acquire and retain the talent we need to sustain and grow our economy, employers and government should be regularly assessing themselves against other similar jurisdictions when it comes to benchmarking pay and benefits,” it said.
Chamber of Commerce chief executive Murray Norton said that many employers in the Island “regularly review and increase wages”.
He added: “[They do so] both as diligent employers, but also because employers in Jersey are in a very competitive marketplace for the recruitment of new employees.
“This is where it is more likely that the challenges of recruitment have pushed wage levels higher without wage requests being required as often. It is also worth remembering that in almost every survey on the subject, whilst pay is a key motivator for many of course, several other factors like opportunities to be promoted, benefits and wellbeing, and job satisfaction, contribute to employee motivation.”
Deputy Rob Ward, a former teacher, said that many companies offered bonuses and other incentives, but added that: “One of the things this shows very clearly is the importance of being represented by a trade union, as when it’s down to the individual [to ask for a pay rise] it can be more difficult.”
His comments came not long after one of the Island’s main teaching unions concluded a three-day strike over pay.
Members of the National Education Union this week walked out after rejecting the government’s latest offer of an 8% pay increase, that would take effect from 1 January 2024, a one-off payment of £1,000 on the same date and pay rises matching inflation for 2025 and 2026.
Average earnings
According to Statistics Jersey, average earnings in Jersey – after adjusting for inflation – have increased by around 13% since 1990.
