12.11.2025

Fair pay doesn’t have to cost a fortune 

Pay awards across manufacturing have levelled out, with average settlements matching national trends by remaining steady at three per cent.  

Most companies are choosing modest increases rather than freezes or large jumps. 

After several years of volatility, pay restraint has returned. But wage stability doesn’t make it easy to keep people motivated, fairly rewarded and engaged. 

How to be fair and also competitive 

Manufacturers are walking a fine line when trying to control costs and keep employees happy. The question is no longer how much to pay, but how to ensure pay feels fair and connected to performance. 

A stable pay environment gives employers a valuable opportunity to review their approach. The focus should shift from one-off pay decisions to a consistent reward strategy that supports retention, productivity and trust. 

What employers should do next 

  1. Review pay and reward structures: Benchmark your pay levels against reliable market data and check that your reward systems reflect your organisation’s size, sector and region. Consistency matters as much as competitiveness. 
  2. Evaluate roles and responsibilities: Use job evaluation and analysis to ensure fairness across roles. This protects against equal pay risks and helps explain pay differences clearly and confidently. 
  3. Link pay to performance: Connect pay and reward to performance outcomes that drive the business forward. Clear objectives and regular feedback help employees understand how their contribution adds value. 
  4. Listen to your people: Use employee engagement surveys to understand how pay and reward are perceived. Transparency builds trust and can help address issues before they become turnover risks. 

How Make UK can help 

We help manufacturers design pay and reward strategies that work for people and for business. 

Our support includes: 

  • Pay and reward consultancy to review structures, benchmark data and design effective reward models. 
  • Job evaluation and analysis to ensure fairness and defend equal pay decisions. 
  • Performance management frameworks that connect recognition, development and reward. 
  • Employee engagement surveys to measure how pay perception affects morale and retention. 

We work with employers to create pay strategies that attract, motivate and retain the talent they need. 

If you want support reviewing your pay and reward approach with confidence, get in touch. Email [email protected] or call 0808 168 5874.