Third of firms ‘introducing pay freezes’

One in three UK employers have initiated pay freezes this year as the recession rumbles on, new research has revealed.

The study by IDS, the pay analysts, has revealed that the workers most likely to experience a pay freeze were those within the motor, construction, road, air, chemicals and media sectors.

And those who have received a pay rise were likely to see their income increase by some 2.9 per cent, the research continued, the Press Association reports.

"In many cases pay freezes have been justified through commitments to safeguard jobs. Firms are conscious of the need to retain a skilled workforce for when the market eventually picks up and are trying to avoid unnecessary cuts," the report read.

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However IDS’ Ken Mulkearn said that many firms that had introduced pay freezes were likely to return to increasing salaries again next year.

A recent survey by Chiumento revealed that the introduction of reward strategies could help companies to engage their employees and keep them working hard.