Pay rises 'being curtailed by new policies'

Posted by Craig Williams

Pay rises are being restricted across all employment sectors in the UK by the fact that companies are eager to avoid any repeat of structural problems that may have been heightened by the global economic downturn, an expert has suggested.

Charlie Ball, deputy director of research at the Higher Education Careers Services Unit, noted that the majority of companies are keen to make sure they have the right talent in place within their workforce to grow, but added this recruitment policy could be impinging on wage rises.

Mr Ball explained that many firms have "learned their lessons" from the recession and are subsequently "trying to avoid large-scale redundancies" and cutting back on their recruitment schemes, but the knock-on effect of this has been the curtailing of budgets relating to training and salaries.

Recent research by XPertHR found that pay awards slipped in the first quarter of 2011, despite upward pressure on salaries.
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04/05/2011 13:45

News category: Employment

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