HR AND PAYROLL eZine October eZine 2009 Feature Article OVER HALF OF FIRMS HAVE IMPLEMENTED PAY CUTS More than half of all firms implemented pay freezes in 2009, according to business group IBEC. The survey of 86,000 workers, 508 companies, found that the majority of enterprises had pay freezes and reductions in staff numbers this year. According to the survey, some 56 per cent of firms have reduced their pay bill by an average of 21 per cent over the past 12 months, and 59 per cent of companies introduced pay freezes in 2009. It also revealed that; | - 45 per cent of firms said they would be retraining existing staff, while 59 per cent of employers were likely to halt recruitment in the next three months; | | - 31 per cent of businesses intend to eliminate bonus payments, while 29 per cent intend to reduce such payments; | | - 32 per cent of companies surveyed expect to reduce temporary staff; | | - A reduction in permanent staff is expected in 28 per cent of firms. | | - Short-time working is expected in 32 per cent of companies with a further 45 per cent considering implementation. |
According to Ibec director Brendan McGinty, “It has been costing about 20 per cent more to do business in Ireland than it has in the countries with which we trade….most people recognise that the survival of their enterprises and their jobs means that costs must be reduced.” Click here to return to the eZine
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