Just Half of Employees Received Pay Rise in 2009
Two thirds of employees received a pay rise last year, but just half received one in 2009, research from the Chartered Institute of Personnel and Development (CIPD) has highlighted.
However, the survey also revealed that the number of employees who were satisfied with their pay rise has doubled since last year — from 31% to 62%. In addition, 41% of staff had their pay frozen this year, compared with 21% in 2008.
“Businesses need to engage with staff and explain what their position is on salaries,”
said HR consultancy firm the Efficiency Coach’s founder, Heather Townsend.
“If a firm explains that times are still tough then employees are more likely to accept the situation than if a freeze is put in place when the indications given out are that a company’s in a better position.
“The way employees facing another year with a possible pay freeze respond may depend on what message a company has been giving out,” she added.
“Employees, especially those who feel guilty if they’ve seen colleagues made redundant, need to be shown that they are valued, for example by being given tailored development support,” said Townsend.
CIPD reward adviser, Charles Cotton, said it is good to see that pay rises are being better appreciated by employees, especially under the current economic climate.
“The survey demonstrates the power of a pay rise and how it is communicated, as recognition of hard work and achievement against objectives, especially as more satisfied employees are less likely to leave,” he said.