Pay Freeze Set to Continue in Private Sector

The Chartered Management Institute have been busy surveying 900 or so CEO’s from the UK’s private sector and they have revealed that employers are expecting the economic situation to worsen before it truly improves.

Just under half of the UK organisations have kept pay freezes in place this year with 53% of them closing their doors to new recruits.

With many thinking there are still difficult times ahead, 68% are opposed to increases in employer National Insurance Contributions feeling it could damage growth prospects.

Th chief economic adviser to CMI, Lord John Eatwell said: “The economy is growing, albeit at an anaemic 0.2%, but the promise of recovery is not enough to sustain our businesses while they wait for the situation to improve.”

It will be the managers and entrepreneurs who will see the UK through these difficult times. It is important to keep morale high and staff engaged in your organisation to ensure productivity and engagement remains high.