Public sector groups planning perk cutbacks

A new survey has suggested that public sector firms are planning to cut back on staff benefits and pay packets, as the government prepares to unveil its comprehensive spending review on October 20th 2010.

Research from London law firm Eversheds found that more than half of the 150 publicly-funded organisations polled are already in the midst of a recruitment freeze, while 66 per cent are considering an overhaul of employment practices.

"Employment contracts and policies are clearly being scrutinised across the board," said Eversheds partner Mark Hammerton. "Recruitment is also severely restricted, if not precluded, for many."

The survey also discovered that one-fifth of public sector employers intend to reduce staff perks, with 47 per cent said they were poised to introduce more stringent performance and absence management strategies.

Get our essential weekday HR news and updates. Email This field is for validation purposes and should be left unchanged. Work Email Keep up with the latest in HR... This field is hidden when viewing the form Optin_form This field is hidden when viewing the form Optin_date Year Month Day This field is hidden when viewing the form Batch_Newsletter

Professionals concerned about the impact of lowered public spending should consider attending the HR in the Public Sector 2010 event at London's Canary Wharf on November 25th.

Posted by Hayley Edwards