Compensation & Benefits: Employment trends survey reveals extent of workplace belt tightening

19 January 2012 |

The Confederation of British Industry and recruitment consultancy Harvey Nash have published a survey revealing the extent of organisational changes employers have made or are considering making to weather the downturn.

Key findings

The survey attracted responses from 704 organisations, together employing nearly three million people.  Findings included:

  • 55% of employers planned a pay freeze in their next pay review whereas 39% planned to award a modest pay increase.
  • 61% of employers planned a pay freeze either across the whole or parts of their organisation.
  • 62% of employers have maintained bonus structures while a quarter of employers have restructured bonus schemes to reduce their value.
  • average redundancy pay was £12,000 per employee (compared to maximum statutory redundancy pay of £10,500).  
  • many employers had increased flexible working (45%), reduced paid overtime (43%) or had reduced the use of agency workers (33%).
  • 26% of employers had moved or were considering moving jobs or operations overseas due to the financial crisis.

Comment

Although the flexibility of the UK labour market has allowed many employers successfully to adapt to the downturn, changes to contractual entitlements require careful planning and employee consultation to avoid exposure to claims for unfair dismissal and unfair discrimination.

Resources

Employment trends 2009: Work patterns in the recession

Disclaimer

Content is for general information purposes only.  The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice.  If you require assistance in relation to any issue, please seek specific advice relevant to your particular circumstances.

Disclaimer

Content is for general information purposes only. The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice. If you require assistance in relation to any issue please seek specific advice relevant to your particular circumstances. In particular, no responsibility shall be accepted by the authors or by Abbiss Cadres LLP for any losses occasioned by reliance on any content appearing on or accessible from this article. For further legal information click here.

Circular 230 disclosure

To ensure compliance with requirements imposed by the IRS and other taxing authorities, we inform you that any tax advice contained in this article (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

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