Loyalty to employers to be tested by salary freezes

Some 16 million workers - over half of the UK''s workforce - do not expect to receive a pay rise in 2010, a new survey has found, which puts pressure on staff''s loyalty to their employers.

The research, carried out by YouGov, also showed that a further nine million staff believe they will receive a pay rise in 2010, but one that is under the level of inflation.

One way of boosting retention in companies is by offering salary increases, a particularly effective strategy in an economic downturn where well-paid jobs can be relatively scarce.

Ann Robinson, from utilities firm uSwitch which commissioned the survey, said: "The government is toying with measures such as raising takes to reduce the public deficit, which will have a direct impact on personal finances.

"When coupled with lower than anticipated salary increases, it can only mean we are in for a bumpy ride."

Total reward statements, a document that provides employees with a breakdown of benefits and what is drawn from the salary and what is additional, can help to boost employee retention. Back