A poll of 540 private sector employers by Industrial Relations Services (IRS) has found that the median forecasted pay rise for 2009 was 3.5%. This is the same figure as the corresponding survey found last year. Will that really be what happens in the private sector over the up-coming pay round? Was the survey taken just ahead of the time when the full horror of the World’s financial problems came to light? Do they think that retaining key staff will still be the critical factor even though any sensible employee will stay where they are for the next few months (years?)? Will they really be able to pass on cost increases?
In practice, I do not think anyone in the private sector really knows what commercial and salary pressures there will be when this season’s pay review comes around.
Posted by Frank Hobson 