HRreview Header

Public sector pensions threatened by government reform

-

According to a new study by leading recruitment consultants Badenoch & Clark, public sector workers are desperatley keeping hold of their pension packages in the face of ever decreasing morale levels.

The outrage expressed at the announcement that public sector pension contributions will likely rise substantially from next April – is demonstrative of a prevailing mood across the public sector. With the future of public sector pensions threatened by government reform, nearly half (44.9%) of all public workers said that they would rather their pay were cut than their pension. In advance of last month’s strikes, over half (53.8%) said that they firmly believed that their benefits were worth striking over.

The research revealed that public sector workers are staunch supporters of their workplace benefits, in spite of cuts and redundancies. The study of over 1,000 public sector workers revealed that a quarter (25%) of senior public sector decision makers, and a third (33.3%) of London-based workers do not believe that private sector benefits packages match up to those of the public sector. A fifth (19.2%) of workers based in Scotland believed that public sector pay should be better than private sector remuneration.

Nonetheless, the great public sector pay debate continues. One third of public sector workers believe that they should be paid more than they currently are – with a further two in five (40%) going as far as to suggest that public sector pay should be equal with that of the private sector. Revised pay and pensions packages could be just one of the issues therefore required for uplifting morale, which remains low. Three quarters (73.3%) of those recently surveyed rated morale average to poor.

Nicola Linkleter, Managing Director at Badenoch & Clark said:

“The public sector remains in a state of crisis. With morale low, further cuts looming, and pension contributions set to rise exponentially, managers must continue to ensure that workers understand the future direction and opportunities within the sector. The need for careful, grassroots change management is absolute.

“Leaders must now reassert the public sector brand more than ever before. Workers will remain loyal to their employer so long as they perceive that they employer is committed to its workforce. This commitment must include clarity on pension reform; lack of transparency will further damage morale, and could lead to further strikes.

“Come October, a year on from Osborne’s initial Comprehensive Spending Review, it will be important to observe how, if at all, the public sector has repositioned itself, internally and externally.”

Latest news

Turning Workforce Data into Real Insight: A practical session for HR leaders

HR teams are being asked to deliver greater impact with fewer resources. This practical session is designed to help you move beyond instinct and start using workforce data to make faster, smarter decisions that drive real business results.

Bethany Cann of Specsavers

A working day balancing early talent strategy, university partnerships and family life at the international opticians retailer.

Workplace silence leaving staff afraid to raise mistakes

Almost half of UK workers feel unable to raise concerns or mistakes at work, with new research warning that workplace silence is damaging productivity.

Managers’ biggest fears? ‘Confrontation and redundancies’

Survey of UK managers reveals fear of confrontation and redundancies, with many lacking training to handle difficult workplace situations.
- Advertisement -

Mike Bond: Redefining talent – and prioritising the creative mindset

Not too long ago, the most prized CVs boasted MBAs, consulting pedigrees and an impressive record of traditional experience. Now, things are different.

UK loses ground in global remote work rankings

Connectivity gaps across the UK risk weakening the country’s appeal to remote workers and internationally mobile talent.

Must read

Jeanette Wheeler: How HR can embrace change, technology and people-centric approaches in 2025

If the last few months are anything to go by, we can expect big changes for the HR sector next year, writes Jeanette Wheeler...

Robert Leeming: The ‘phony world’ of the living wage?

There is no doubt that George Osborne's living wage, to be launched next year, is a policy with its heart in the right place. For example, more than three and a half million women, almost 30 percent of the female workforce, will receive a pay rise as a result of the legislation.
- Advertisement -

You might also likeRELATED
Recommended to you