Credit crunch 'has not halted pay rises'

29-08-2008

Credit crunch 'has not halted pay rises'
According to a new poll, many UK companies are still offering their employees pay increases despite the credit crunch.

The survey, conducted by Incomes Data Services, found that a third of employers offered their staff a three per cent increase in their wages this quarter.

Contrary to advice offered by the government, 25 per cent of companies had agreed on employee wage rises over the rate of inflation, Management Today reported.

Workers from the chemical and pharmaceutical sectors were found to be the best off, as well as employees of the Construction Industry Joint Council, some of which saw a wage increase of six per cent.

The figures also found that the standard pay settlement reached between firms and employees this quarter was 3.5 per cent.

A study undertaken by uSwitch.com found that the average British household will end up with £2,500 less than last year.

Such pay rises should not be unexpected, according to ClickAJob Marketing Manager Anders Jensen.

"There might be a credit crunch, but savvy companies know there is also a talent crunch and it’s getting more severe every day," he says.

"If skilled staff aren’t happy with their pay cheques, they’ll walk."

"On top of that, every employer knows that keeping skilled staff in place and happy is a lot less costly than going through hiring from scratch," he points out.

"Providing career prospects, ensuring a pleasant work environment, and keeping pay rates competitive are all critical to retaining top quality staff and driving companies forward," he continues.

"The credit crunch might worsen, but good, skilled, professional people with a dedicated career reflex are unlikely to be affected by it."

Related categories: HR / Recruitment.


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