The median pay award has fallen sharply to 3% (subscription required) in the three months to 31 January 2009, while the number of pay freezes has shot up, according to latest pay trend analysis from IRS, published to XpertHR today.
This is significantly down on the headline pay award recorded for the preceding three rolling quarters, which ran at 3.8%.
And this dip in pay awards could be only a taste of what is to come.
As we recently noted, the IRS pay data for January 2009 provide a crucial indicator for the direction of pay awards over the coming year.
Closer analysis of our sample of pay deals with January 2009 effective dates reveals that:
- one in four January 2009 pay reviews in our sample has resulted in a 12-month pay freeze; and
- over half of January 2009 pay deals are set lower than in 2008.
This provides stark evidence of how severely the economic slowdown is affecting pay bargaining. A lower trend in pay awards would appear to be in prospect for the remainder of this year.
- Has your organisation recently carried out an annual pay review? If so, and if it has now been settled, please get in touch so that we can add your organisation's pay award to the IRS database.
| Tweet |
|
| Permalink | Email this |
