‘Unfair’ Pay Freezes May Not Damage Worker Loyalty, Says Workplace Expert

While only half of employees (51%) thought their pay was fair before the current recession, pay freezes may not reduce worker loyalty.

Walton-on-Thames, United Kingdom, July 11, 2009 --(PR.com)-- Just half of employees (51%) thought their pay was fair before the current round of freezes, according to the views of hundreds of thousands of employees collected by ETS, the employee survey organisation. However, ETS believes that people may accept not getting a pay rise in favour of job security.

Pay freezes are increasingly common: the Audit Commission is advocating them for the public sector and a CBI survey says they are either planned or in place for most companies.

“In better times, employees strongly resist efforts to cut or reduce their pay. While we expect to hear loud complaints when pay is frozen, we believe people may accept it as the price for keeping their jobs,” said Betsy Travis, Chartered Occupational Psychologist and Senior Consultant at ETS.

The figures that ETS is releasing for the first time today reflect the views of hundreds of thousands of employees’ views between 2000 and 2008. Happiness with pay has increased over the last nine years, with 38% of workers agreeing that their basic pay was fair when asked in 2000, rising to 51% by the end of 2008.

ETS expects the percentage who believe their pay is fair will fall, but modestly as they rationalise it against the economic situation, and will not have a major negative impact on overall worker loyalty. ETS will release these figures when they become available in December.


Editors’ notes:

More results from the ETS employee surveys are available http://www.etsplc.com/news/news-releases.aspx

About ETS

ETS plc is the only major provider of bespoke HR technology and consultancy. ETS clients use our employee surveys, 360-degree feedback and performance management services. ETS clients get exactly what they need by working with us to create brand-new processes and technology or by automating and improving what's already working. Client case studies are available on the website: www.etsplc.com.

ETS plc has no links with ETS Europe, the national curriculum test marker whose contract with the Qualifications and Curriculum Authority was terminated last summer, and the similarity of names is a coincidence.

For further information, contact:
Dominic Wake, +44 (0)1932 219 949; +44 (0)7817 880 261; dominic.wake@etsplc.com
ETS plc
Dominic Wake
+44 (0)1932 222 700