PracticeAccounting FirmsPwC issues warning over pay freezes

PwC issues warning over pay freezes

Big Four firm warns that large brands may struggle to attract people because of employer decisions made in downturn

The big freeze: artic ice

PricewaterhouseCoopers said although employees understand the need for pay
freezes, company brands would be affected for the next decade over employment
decisions it makes now.

Over 700 UK workers, that saw their pay or reward schemes affected by the
recession, were surveyed. The report by PwC – ‘Managing tomorrow’s people: how
the downturn will change the future of work’ – warned many powerful employer
brands will be unable to attract top talent in the next decade as a result of
employment decisions made during the downturn.

Jon Terry, partner and head of reward, PwC said: “Pay and promotion freezes,
changes to pension schemes, cuts in recruitment and slashed training budgets,
combined with poor communication, have eroded the bonds of trust between some
employers and their employees.”

He added: “While workers are generally resigned to what the recession may
mean for their pay and promotion prospects, communication between employers and
employees can make all the difference between how this news is received and the
level of trust in the relationship.”

“Those who continued to offer their employees new opportunities and invested
in their people pipeline are now at a competitive advantage,” he said.

Just fewer than half, 49%, said they understood the reasons behind the
cutbacks with just 8% responding they were angry over the amendments. It wasn’t
all good news as 34% said they found pay review decisions “demotivating”.

Further reading:

PwC boosts sustainability practice

Return of the long weekend: why four-day weeks are fraught
with problems

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