According to this week’s Accountancy Age/Reed Accountancy Big Question, a massive 79% of more than 450 FDs questioned do not expect to offer wage increases that outstrip inflation. The results come despite CBI research revealing growing confidence in the economy.
Rachel Haynes, FD at Odyssey CSFT, said above-inflation pay rises would ‘make us uncompetitive and eventually lead to the company going under’.
Graham Bradbury FD at Avocet Hardware, said: ‘Other than the increases required by the legislation for minimum wage we can’t anticipate increases in pay.
One anonymous FD said: ‘Pay rises would be given on merit and not because of inflation.’Another FD said: ‘It’s definitely not an option. Money is being invested into the company for research and development.’
Just 14% remained certain that wages were on the rise. But in most cases, FDs blamed market forces. ‘There is a skills shortage in our sector so pay is going through the roof,’ said one FD.
Another said: ‘We will be giving some rises in line with inflation and others slightly higher – it all depends on those who deserve it and those who have to get it!’
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