Pay freezes set to end next year
Nov 07 2009
Pay freezes are unlikely to continue next year, research suggests
Pay freezes are unlikely to continue next year as optimism over the state of the economy gathers pace, a new report has predicted.
A survey of 41 firms showed that one in five had frozen the pay of all staff this year but three out of four were not considering a similar move in 2010.
Business consultant Mercer said its study also showed that half of firms that froze pay this year found ways of paying more to their most talented staff.
Hannah Perera of Mercer said: "Cash, tarnished by the role of bonuses in the economic slump, is no longer king in the eyes of employers.
"It's being usurped by an emphasis on employee engagement and a focus on motivating specific high-value employees. Whether this approach continues when the economy gathers pace again remains to be seen."
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