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Company Formation Owners Reducing Pay

Throughout the recession, business owners and people who had recently formed a company had to make many tough decisions when it came to their workforce. For most small business, they had to find the quickest and most cost effective way of reducing overdrafts. Subsequently, many employers were forced to make redundancies or freeze salaries.

However, now that the recession is officially over and many small businesses and recent company formations are looking to increase the number of staff they employ, what impact has the recession had on the salaries they offer?

According to a recent report from the Chartered Institute of Personnel Development, many employers have reduced the salaries they are offering since the recession. Peter Roservere, a human resource consultant, explains more:

“Though figures from the ONI confirm that the number of companies look to recruit more staff has increased during the last three months, we have noticed a broader trend of companies offering much reduced salaries that they did before the recession began.”

“ The roles that have reduced in salary the most are graduate positions.”

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