No thaw in pay freezes
Mar 17 2010
Staff pay freezes will continue into next year, according to a survey.
Some 44 per cent of privately owned businesses say they will not offer a pay rise over the next 12 months, 39 per cent plan to increase salaries only in line with inflation, and five per cent intend to cut pay, according to a poll from business advisors Grant Thornton.
Of the 500 businesses surveyed, 49 per cent say they have slimmed down their workforce over the last year, compared to 25 per cent in 2008.
David Campbell, regional managing partner at the firm, says: ‘It’s still tough out there for private companies in the UK with many facing severe financial pressures. The significant jump in the number of businesses that have reduced their headcount is very concerning, particularly if the trend continues.’
According to the survey, businesses in the South West of England and Wales slashed their headcount the most over the last year, with 62.5 per cent reporting staff cuts.
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