Companies plan to cut or freeze salaries

Published:  03 January, 2011

UK: More than half of British companies plan to freeze or cut their employees' pay in 2011, according to a survey by the British Chambers of Commerce.

Of the 450 businesses surveyed, 45% said they would give their staff a pay rise, while 49% intended to freeze salaries and 6% said they planned to reduce wages.

The BCC said the results showed that companies were taking a 'pragmatic' approach to challenging financial conditions, and that some were choosing to cut pay as an alternative to making staff redundant.

Firms taking part were also asked about the impact of the Government's spending cuts on their businesses. Thirty-eight per cent said the cuts would have an impact on their profitability, and 18% said they would delay investment plans as a result. Only 13% expected to lay off workers as a result.

Sign Up

For the Builders' Merchants News enewsletter.

In the spotlight


Builders Merchants Vacancies – UK Wide

At Arco, we are an industry specific recruitment consultancy, providing sales and managerial staff Nationwide to Merchants, Distributors and Manufacturers of Building Materials within the Construction Sales Sector. Priding ourselves on our unparalleled customer service and hard work, we offer a fresh, innovative and personal approach to recruitment specifically designed to meet our clients’ needs and candidates’ skills.

Guest Blog by Simon Damp

Is DIY a lost art?

As time goes by, the art of do-it-yourself when it comes to activities around the home and garden is fast becoming more and more of a lost art.