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Few UK workers received pay rises in 2011
HR News |
05/01/2012
Many UK employees were left dissatisfied by the extent of their pay awards during 2011, it has been reported.
According to the Chartered Institute of Personnel and Development (CIPD), the majority saw their pay either frozen (48 per cent) or cut (five per cent).
A mere 18 per cent of those surveyed received a cash bonus last year as the downturn continued to bite.
As such, employees are readjusting their expectations for the coming year in line with the financial climate.
Among those who did receive a pay rise in 2011, satisfaction levels dipped slightly compared to 2010, but remained strongly positive at +56, compared to +61 in 2010.
The main explanation given by employees for being satisfied with their pay rise is that it reflected the state of the economy.
Charles Cotton, rewards advisor at the CIPD, said this was "encouraging to see".
"However, one of the main reasons cited for dissatisfaction with a pay rise was feeling that it didn’t reflect how well the individual had performed," he stated.
"Employers must try harder to explain what performance the organisation values and how it will reward and recognise this."
If not, levels of motivation and productivity could fall, perpetuating "a vicious circle" that could hold back both organisational performance and wider hopes of economic recovery, Mr Cotton said.
Since 2008, the proportion of employees receiving a pay rise has fallen from 67 per cent to 45 per cent in 2011, down slightly on the 46 per cent recorded in 2010.
Just over half of all private sector workers have had a pay rise since the start of 2011, compared to a mere 24 per cent in the public sector.
Posted by Stephen Wilkinson
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