Tuesday, 3 May 2011

Employers less likely to cut jobs during the recent downturn, but curtailed wage budgets

ILM - Institute of Leadership and Management's newsroom has run a report on the 3rd May 2011 "Companies 'struggling to offer pay rises"

Employers were less likely to cut jobs during the recent downturn, but this is now having an impact on the salaries of their workers, according to the Higher Education Careers Services Unit.

Charlie Ball, deputy director of research at the organisation, said in previous recessions, companies cut staff numbers and then struggled to recover once economic conditions improved.

"They have learned their lessons from that period; when the recession ended many of them found they didn't have the talent to capitalise on improved conditions, so their own corporate recoveries were quite slow," he explained.

In contrast, during the recent downturn, companies aimed to avoid large scale redundancies, but Bell added that this has "curtailed wage budgets and training opportunities".

His comments come after research by XpertHR found that pay awards fell in the first quarter of 2011, despite increased pressure on salaries.

The number of pay freezes also rose in April and accounted for 24.7% of deals in the month, up from 9.2% in March

The Institute of Leadership and Management is the UK's premier management organisation.

Higher Education Careers Services Unit (HECSU) bring you news and information about research and development in career-related learning and career guidance in Higher Education.

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