Motivation down for E.On staff as wage cap planned

Many members of staff working at the Nottingham base of E.On are being forced to accept salary sacrifices to avoid any redundancies taking place, according to the Daily Telegraph.

The newspaper reports that at least 2,500 of the lowest paid staff members will potentially be suffering from a lack of motivation as they will have to accept a wage cap, although they will benefit from a £1,500 one-off payment as a form of compensation.

This is despite their bosses evading any pay cuts and the fact that the gas and electricity firm recently announced its latest profits.

A spokesman for the company told the publication that the "pay realignment" was being introduced so that staff are on a similar salary to that received at competitors.

He said: "There is an element of job security in there, because we''re guaranteeing pay for two or three years.

"Our payroll costs are quite high against the rest of the market and the main drivers behind the move are that we are looking to reduce costs because Ofgem is trying to get us to reduce costs."

A recent poll, carried out for the Metro newspaper by Harris Interactive, found that a good salary was beneficial for both motivation and ensuring that staff were not looking to leave a job. Back