The BCC poll, based on responses from 260 private sector employers, finds that nearly three-fifths (58%) of respondents plan to freeze pay in the coming year. This compares with just over two-fifths (43%) predicting such action in the equivalent survey conducted one year previously. And around one in five (18%) say they will withdraw employee benefits, such as bonuses and gym membership.
There is also some measure of good news in the BCC research: pay cuts appear less likely than a year ago. Only around one in 20 (4.7%) of those surveyed say they are planning to cut pay in 2010. This compares with nearly one in 10 (9%) who were planning pay cuts a year ago.
BCC director-general David Frost commented to the Times (external website):
Wage freezes and cuts are unpleasant but have ensured unemployment has not risen like it did in previous recessions. So far all the pain seems to be felt in the private sector. There have been no such measures in the public sector.
However, it appears likely that public sector workers will not escape pay restraint much longer, according to IRS pay expert Rachel Sharp:
[P]ay awards remain weak [...]as the [2009/2010] bargaining round gets into full swing in January the outlook for pay settlements remains uncertain. The Government's emphasis on pay restraint in the public sector looks to be matched by a limited ability, or willingness, of employers in the private sector to fund substantial wage increases.
Our regular monthly IRS analysis of whole economy pay trends (subscription required) will be the best place to find out how the reward situation develops during 2010.
- 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 |
