Lower salaries resulting in weaker training models, finds report

Iris Software Group’s research explored how more established employees are unwilling to train up less experienced peers who are on a similar salary.

Much is expected of employees in 2026, particularly in the wake of a working environment that has been transformed and reimagined multiple times since the introduction of AI and workplace automation.  

Professionals are often expected to work across a range of teams, to hold a diverse yet specialised skillset and to undertake additional responsibilities, often for a salary that is not reflective of the work being carried out. 

One such obligation often bestowed upon professionals is duties related to the training and support of younger or less experienced co-workers, often as a means of creating a consistent and in-house system of learning. It also means that if and when a professional moves on from the role, there is an equally qualified person ready to step into the position. 

This is the focus of new research conducted by Iris Software Group. On behalf of the organisation, Censuswide collected data from 511 UK-based senior HR professionals and 500 UK employees who have been in full-time work for between two and five years. 

What was discovered is that 71pc of young professionals that have been employed for between two and five years find it difficult to feel motivated to train or help a new starter earning almost as much as them.

In scenarios where a young professional discovered what a new starter earns, 24pc said that it was the same as their own salary. Almost 40pc said that it was up to £1,000 less, while only 16pc said it was between £1,000 and £3,000 less. A further 16pc said that they had discovered new starters were being paid more than they were.

Commenting on the report, Stephanie Coward, the managing director for HCM at Iris, said: “It’s not surprising to see frustration building when young professionals are taking on harder work, more responsibility and helping train the next intake, but see almost no difference in their pay.

“Businesses have faced genuine pressure to raise starting salaries, including increases to the National Minimum Wage and National Living Wage. But this isn’t only being driven by forces outside employers’ control. HR professionals also pointed to internal issues such as salary bands not being reviewed regularly enough.”

Core concerns

Almost a third (32pc) of HR leaders who participated in the research admitted that the gap between young professionals and those who are just starting out has narrowed over the course of the last two years. 

Among the factors noted by the report as having a part to play in pay compression are rising national minimum and living wages in the UK, as well as companies increasingly prioritising attractive starter salaries over pay rises for the existing staff. 

The research also indicated that there is little positivity among HR leaders that this pay compression is going to improve. Almost half (46pc) of contributors explained that they expect salary bands to narrow further over the course of the next two years.

Among the surveyed young professionals who learned what new starters were being paid in comparison to themselves, 69pc said it had left them feeling undervalued, frustrated or disappointed. Some were motivated to take action, as 16pc accepted a new job offer and a third requested a pay increase. 

Moreover, despite 84pc of participating HR leaders concerned about the risk of losing the loyalty of young professionals who feel as though their pay does not reflect their additional responsibilities and experience compared to new recruits, only 20pc have plans to make targeted salary adjustments.

Coward said: “Compounding the problem, almost a quarter (23pc) of HR leaders said their current HR systems are not capable of comparing pay against changes in employees’ skills and responsibilities, making it harder to identify where pay compression is emerging and which employees are most affected.

“Most businesses won’t be able to solve this with blanket pay rises. But they do need to understand where compression is happening and where it risks costing them good people. A targeted salary increase may look expensive, but so is losing an experienced employee, recruiting their replacement and rebuilding the knowledge that walks out of the door with them.”

Don’t miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic’s digest of need-to-know sci-tech news.