Nearly half of respondents plan pay freezes for 2012

Nearly half (43%) of respondents plan to implement a pay freeze in 2012, according to research by Croner.

The research, by the UK provider of workplace information, software and services, also found that a quarter of the 100 private sector organisations surveyed said their pay award for 2012 will be higher than 2011.

The research also found:

Among respondents implementing a pay rise, the typical amount will be between 2% and 3%.
Respondents in the manufacturing sector plan a pay increase between 2% and 4%.
Almost 50% of respondents said their pay award will be less than last year.
One in five respondents with a pay freeze are considering compensating staff with a one-off bonus when they can afford it.
11% of respondents are looking to move away from an annual across-the-board award to individual performance award.

Viv Copeland, head of reward at Croner, said: “We have found that affordability is the most important factor when an organisation decides on its 2012 pay award.

“Employees will find this news hard to take, particularly with inflation now at 3%. The majority of employers are well aware that sustained pay freezes will not motivate or retain staff.”