Wage bills race ahead of hiring at biggest firms

Scotland 500 analysis reveals wage pressure affecting country’s largest companies who are paying more for staff but adding relatively few posts

Scotland’s biggest employers are paying out far more for staff while adding relatively few jobs.

placeholder image — Michael Diamond | Norman Broadbent

Scotsman Insider’s analysis of filed accounts for the Scotland 500 shows the combined wage bill rose 7.2 per cent to £16.6bn, while headcount at the same 436 firms, with comparable figures, grew just 2.9 per cent.

Average pay per employee rose 4.1 per cent, from £48,696 to £50,712.

For 82 companies, fewer staff still cost more with headcount falling and wage bills rising.

Many of these accounts predate April 2025’s rise in employer National Insurance contributions, which suggests the pressure on payrolls has further to run.

Michael Diamond, managing director for Scotland at executive search firm Norman Broadbent, said: “Political change, higher employment taxes, cost-of-living pressure and geopolitical conflict have made the past two years demanding for Scottish employers, resulting in a market that is resilient but increasingly uneven.”

Across 454 firms, with comparable workforce numbers, headcount rose 1.9 per cent to 380,021, a net gain of 6,988 jobs. Some 267 firms grew, 26 held steady and 161 cut staff.

Energy led the hiring. ScottishPower added 2,926 staff and SSE 844 as grid investment gathers pace, while GXO Logistics added 1,794 and Stagecoach 1,305.

Bank of Scotland recorded the largest fall, cutting 3,991 staff. Some of the largest movements may reflect staff moving between group companies.

The five-year picture is stronger, with headcount up 9.9 per cent.

Scotsman Insider’s new Scotland Hiring 100 ranks the firms building their workforces most consistently.