Employees in the UK are worried that the credit crunch will affect their chances of receiving pay increases in the forthcoming year, according to a survey by Hymans Robertson.
Furthermore, the survey found that one in three UK employees expects a cut in their pay package this year, while one in ten expects their company pensions benefits to suffer too.
Conversely, the survey showed that employers were optimistic about being able to offer attractive remuneration packages and increased benefits. This disconnect is demonstrated by responses in the retail sector where 41% of employees said they expect no pay rise at all in 2008, whereas 44% of resource managers say that they expect to offer pay rises above the rate of inflation.
Londoners are the most confident about their chances of receiving an increase; 66% expect an inflationary rise in the next year. Employees in the Midlands are the most pessimistic: in this region 36% expect no pay rise at all.
Clive Fortes, partner at Hymans Robertson, said that the research is demonstrative of a lack of communication between staff and their employers – one which needs to be addressed. “Companies now have a job to do addressing the low expectations employees have of their reward packages.”
© Crimson Business Ltd. 2008
