While the weather outside maybe warming up, according to a recent survey conducted by business consultants KHPG, there is still a distinct chill in the air of most offices when it comes to terminating pay freezes.
For many employers, having to make members of their team redundant was an unfortunate consequence of the recession. As was having to implement a ‘pay freeze’ policy. However, as the UK is now officially out of recession and many sectors of enterprise are experiencing growth, you would expect that for most employees their salary would return to pre-recessionary levels. But this is not the case.
While over eighty per cent of all business owners say that they have no plans to make any more redundancies in 2010, over forty per cent of all respondents have said that they do not plan to offer their employees any salary increases over the next year.
Clare King, new business manager at KHPG, comments; “From the feedback we have received from our clients, it is clear to see that while the economy is undoubtedly recovering, market conditions area still tough. Therefore, I would suggest that for many employees pay freezes are likely to continue well into 2011.”