CBI: Recruitment freezes are thawing

While many UK employers are continuing to avoid offering pay rises as the recession rumbles on, several are now beginning to thaw their recruitment freezes, the Confederation of British Industry (CBI) has stated.

Research by the group and recruitment experts Harvey Nash has revealed that half of all employers are now planning to freeze wages altogether, while only four per cent are planning rises which go above the rate of inflation.

However, the number of firms putting off hiring new staff has fallen, with companies operating recruitment freezes declining from 61 per cent during the spring to 37 per cent today.

John Cridland, CBI deputy director-general, said: “The new spirit of cooperation between employers and workers will be a real fillip for UK competitiveness as we return to growth, delivering more flexible working and a welcome improvement in the work-life balance.”

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Indeed, Rob Lovell, chief executive officer of ThinkGrid, recently stated that such flexible working practices could help businesses to boost productivity.