Pay sacrifices save jobs

Pay sacrifices save jobs
Sunday, 20 December 2009 00:00

Estimates say that half of the UK's employees have made a pay sacrifice during the recession in an effort to preserve their jobs.

The recent survey carried out by GfK NOP found that of its respondents 28% of employees undertook unpaid overtime.

A further 15% accepted a freeze on pay rises, 14% took unpaid leave, 7% agreed to pay cuts and 4% signed up to voluntary redundancy.

It was also reported that other employees had not asked for a pay rise and others declined bonuses that were due them.

As a total proportion, 53 per cent of employees polled had made at least some form of pay sacrifice over the last 12 months.

It is thought that the willingness of many workers to help in this way has kept down the number of firms going out of business during the recession.

At the peak of the last recession in 1992, there were some 24,425 liquidations; in the first three quarters of 2009, just 14,705 firms entered liquidation.

The rise in unemployment during the current economic downturn has also been less severe than anticipated, a possible result of the flexibility of the UK's labour market and the widespread use of pay freezes.

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