Pay freezes ‘could boost business health’

The financial health of businesses has been improved this year through initiatives such as pay freezes and unpaid holidays – and HR staff around the UK may be considering similar schemes in order to reduce costs and avoid redundancies.

Research by O2 has revealed that over a quarter of the businesses surveyed are now financially stronger than they were one year ago, while a third feel more confident than this time in 2008.

While 39 per cent of respondents have had to carry out redundancies, 59 per cent are hopeful that cost cutting measures will see their company perform better in the new year.

Entrepreneur and star of BBC Online Dragons’ Den Shaf Rasul said: “Throughout a year of the deepest recession on record, small businesses have been finding ways to adapt to the climate and, in some cases, even use it to their advantage – and they are now entering 2010 ready to fight.”

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The recent Lloyds TSB’s Business in Britain survey revealed that corporate confidence is now at a two-year high.