More than half of employees have had their pay frozen or cut

More than half of employees report their organisation has either frozen pay (46%) or cut pay (7%), according to this quarter’s Employee Outlook Survey from the Chartered Institute of Personnel and Development (CIPD).

More than half of employees in the private sector have had their pay either frozen (42%) or cut (7%), while 63% of the public sector have experienced a pay freeze and 6% a pay reduction.

Ben Willmott, senior public policy adviser at the CIPD, said: “With employees feeling the pinch financially, concerned over their job security and with fewer opportunities to move up or move on, employers need to deliver consistently high-quality leadership and management on the front line. How managers communicate, consult and coach and develop staff is critical.

“Employers need to find cost-effective ways of equipping line managers with the people management skills to support employee engagement and wellbeing. They also need to consult and involve staff where major reorganisations or changes in terms and conditions are looming if they are to keep people on side and pulling together to deliver future success.

“Many leading organisations in both the public and private sectors are already prioritising improving people management capability and employee engagement as they recognise this is central to gaining competitive advantage. These employers are looking closely at how they develop and support managers and are also using low-cost and no-cost solutions such as providing toolkits, guidance and line manager webinars or interactive forums to help managers acquire the key skills they need to manage effectively in tough times.”

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