According to CIPP policy liaison officer Diana Bruce, salary increases are likely to remain muted throughout the course of 2011, but there are a range of other options open to employers to help maintain staffing levels.
“The flexible benefits package that [businesses] offer employees is a key area; they are not actually giving away additional cash but the employees will hopefully feel the benefit,” she explained.
Ms Bruce added that non-cash benefit initiatives could become increasingly prevalent over the coming months and encouraged bosses to communicate effectively with workers to avoid a potentially damaging slump in morale.
Her comments came after research from the Hay Group revealed 93 per cent of firms planned to boost remuneration this year, although the median salary increase forecast was a below-inflation 2.5 per cent.
Posted by Hayley Edwards
