PAY DATA
Settlement levels running at 2.3%
Settlement levels for 2009 are currently running at 2.3% at the median, according to figures gathered by Incomes Data Services. Higher-level awards have continued to occur despite freezes numbering around a third of pay settlements.
This has created a noticeable division in the distribution of pay settlements: wage freezes on one side and increases at 2% and above on the other. Excluding the batch of freezes in 2009, the median pay settlement level is 2.9%.
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Meanwhile, a survey of reward specialists by IDS shows that three-fifths of those firms that froze pay in 2009 will award pay increases once more in 2010.
Pay freezes
Ken Mulkearn, Editor of IDS Pay Report said: “Many of the gloomiest predictions on pay made at the start of the year failed to materialise. There were not widespread pay cuts or pay freezes across the board.” Pay freezes remain highly sectoral, according to IDS, with the motor industry, construction, bulk chemicals, road and air transport and the media particularly susceptible. Sectors which are less affected include energy, finance (though this has been balanced by large-scale job losses), pharmaceuticals, bus and rail transport, food retailing and food manufacture.
Mulkearn said: “In many cases pay freezes have been justified through commitments to safeguard jobs. Firms are conscious of the need to retain a skilled workforce for when the market eventually picks up and are trying to avoid unnecessary cuts.”
A final word
“Findings from our latest subscriber survey show that most firms with zero awards in 2009 may return to increasing pay again next year. So while prospects for the economy remain uncertain, many firms will be planning ahead for a possible recovery in 2010.” - Ken Mulkearn, Editor of IDS Pay Report.
Want to know more?
Title: “Pay prospects 2010: Planning for recovery”, Incomes Data Services, September 2009.
Availability: This special issue of IDS Pay Report contains analysis of the outlook for pay and conditions over the coming months aimed at helping practitioners plan for a possible recovery. The report contains details of current pay trends, sector-by-sector analysis, inflation forecasts and the reward agenda for 2010. To purchase this report (£95 inclusive of VAT), visit www.incomesdata.co.uk or contact IDS customer services, tel: 0845 600 9355.
Incomes Data Services is the "leading UK information and research service on employment issues". To find out more visit www.incomesdata.co.uk.