UK Recruitment Glossary
Merit Increase
In recruiter context
UK merit increase pools in 2026 typically run 3-5% of total salary cost, distributed unevenly: top performers might get 7-10%, average performers 2-4%, below-average 0-2%. The pool is set company-wide, then distributed by managers based on calibrated performance ratings. The candidate-side mistake: assuming inflation-matching is the merit increase. It usually isn't — most UK companies fold inflation into the merit pool, meaning a 'meets expectations' rating effectively gives you a real-terms pay cut in high-inflation years. The fix is documenting impact, asking explicitly about the merit pool size in 1:1s, and being prepared to argue for an above-average distribution at review time.
Related terms
Reference Check
A call or written enquiry the employer makes to confirm your past employment and performance.
Counter-Offer
When you resign and your current employer offers a raise, promotion, or new title to make you stay.
Equity / Share Options
An ownership stake in your employer, granted as options or shares that vest over time.
Implied Terms
Contractual terms that exist in employment contracts even if not explicitly written — duty of mutual…