Pay freezes 'are thawing out'

More companies are going to cancel pay freezes this year, according to an expert, who said the improving economic situation in the UK and the fear of losing talented staff are driving factors in the trend.

Duncan Brown, director of HR business development at the Institute for Employment Studies, said that pay freezes have served an important purpose in retaining jobs, but now they could hinder progression and staff retention.

"Fewer companies are forecasting freezes this year than last. Why? Recovery picking up in some sectors, and fears in others that two years of [pay] freezes and no bonus will mean better people will leave," he said.

People looking for sales jobs could benefit from companies increasing salaries and Mr Brown believes firms will start to try and make staff feel more valued.

As well as more pay, companies using sales recruitment need to ensure they make employees feel appreciated in order to get the best out of them, according to Louise Davies, communications manager at Kellogg's.

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Posted by Wayne Bly

Filed: 25-05-2010