Wage drops 'affecting small businesses'

Posted by Francesca Witney

Small companies are likely to have their growth prospects negatively affected by the trend of declining pay packets being seen across the country.

That is the opinion of Prue Watson, spokeswoman for the Federation of Small Businesses (FSB), who believes the fact real salaries are declining is bound to restrict future investments and the general development of such companies.

"Falling wages is a symptom of declining revenues and profits. For some, it may be pay cuts so bosses can pay staff instead or investing in next year's new products or services," she noted.

Earlier this month, research by Croner established that the average pay received by directors of small businesses has fallen by £5,000 throughout 2011 as the nation continues to struggle in the wake of the recession.

And Ms Watson went on to indicate that the situation could deteriorate to the point whereby these firms have no choice but to implement redundancies. ADNFCR-2353-ID-801245844-ADNFCR

21/12/2011 11:47

News category: Employment

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