Businesses are reacting to the economic downturn in different ways. Some are laying off staff and others reducing working hours. For an increasing number still with a job, however, the prospect for a pay rise this year is looking ever-more distant.

A survey from the CIPD has revealed that one-third of employers have restricted the level of pay increases this year, although so far only 4% have instigated a pay freeze.

Our research here at IRS (subscription required) into the level of pay rises has also revealed a significant pick-up in the number of organisations implementing a pay freeze in the first two months of 2009, and all the signs are that this will continue well into the year.

IRS will be publishing its latest data on pay rises on Friday 20th February, so bookmark our homepage to read about just how prevalent pay freezes and deferred pay rises are becoming.