Businesses adopting a cautious approach to pay - CBI/Harvey Nash

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Businesses adopting a cautious approach to pay - CBI/Harvey Nash

Firms are increasingly taking a cautious approach to pay as they look to stay competitive, according to a survey published today by the CBI and recruitment specialists Harvey Nash.

The survey found that pay restraint “remains the norm”, with nearly half of all firms planning a below-inflation pay award or targeted pay rises, and a fifth planning a pay freeze in order to remain competitive.

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CBI Director-General, John Cridland, said: “Pay awards in particular remain low as businesses look to make sure they stay competitive in tumultuous times. We have to accept this constraint as the new normal - we will only be able to afford to pay ourselves more in the long-term by improving productivity and competing more effectively around the world.”

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Title: Employment Trends Survey, Spring 2012, CBI/Harvey Nash, May 2012.

Survey details: Conducted between February and April 2012, there were 319 respondents. Respondents were based across the UK and represented a wide range of company sizes and sectors.

Availability: To find out more about the survey visit www.cbi.org.uk/business-issues/economic-intelligence.

The CBI is the “UK's leading business organisation, speaking for some 240,000 businesses that together employ around a third of the private sector workforce”. For more information visit www.cbi.org.uk.

Harvey Nash, a “global professional recruitment consultancy and IT outsourcing service provider, is committed to delivering the very best talent and IT solutions to a broad base of international clients”. More details are available at www.harveynash.com.