Almost Half of Small Firms to Raise Salaries this Year
Almost half of small businesses are planning to offer staff a raise this year, research from the British Chamber of Commerce (BCC) has found.
The BCC survey of 450 SMEs found that 45% planned to increase wages in 2011, 49% to freeze salaries and just 6% to lower pay.
“Firms are doing whatever they can to retain staff even when conditions are more challenging.”
said BCC director of policy, Dr Adam Marshall.
“Despite a number of businesses suggesting that pay will be frozen, almost as many are suggesting wage rises in 2011. Equally, many businesses say that they will deal with reductions in public spending by taking a hit on the bottom line ? rather than reducing staff numbers.”
However, Chartered Institute of Personnel and Development performance and research adviser, Charles Cotton, said that employees in small firms are typically more understanding of pay cuts and freezes than staff in larger organisations.
“Our recent Employee Attitude to Pay Survey showed that employees in small businesses tend to be more accepting of pay freezes or cuts, as they are closer to the financial realities that their employers face.”
“Giving staff more money also doesn’t necessarily mean they will be more satisfied in their roles. It’s worth considering other types of reward such as a performance–related bonus, which could even be deferred over several years. Flexible working arrangements, extra holiday and career development opportunities can also be as important as a pay rise.”