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| Small Business Continues With Pay Freeze in Effort to Sustain Jobs |
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By
Patricia Callan, Director of the Small Firms Association
Aug 23, 2011 |
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Patricia Callan, Director of the Small Firms Association, today launched the SFA’s Quarterly Pay Survey results, which show that pay levels continue to be frozen in the majority of small businesses around the country, with pay increases only being given as a clear reward for productivity and innovation improvements. This trend is set to continue into 2012.
THE DETAILS:
- Three-Quarters (76%) of respondents have frozen basic pay rates this year; with 69% planning to continue this freeze next year.
- 7% have decreased basic pay by a median of 10%, in a continuing effort to try and save jobs in the face of very difficult trading conditions. 3% expect to have to do this again by a median of 10% in 2012.
- 13% have implemented a basic pay increase by a median of 2.5%. 22% expect to increase basic pay in 2012 by a median of 3%, if their businesses continue to grow.
- The average overall percentage change in basic pay rates across the small business sector will be a quarter of a percent down this year, with a small increase overall of 0.39% in 2012.
Callan commented: “Basic Pay increases are more likely to occur by exception on productivity and innovation grounds. Of the companies expecting to implement a basic pay increase in 2011, 56% expect increased productivity in the next three months, 76% expect process improvement, 42% increased workforce flexibility and 69% new product or service development.”
In conclusion, Callan stated “Jobs must be top priority – both the maintenance of existing ones and the creation of new ones. It is better to have more people at work on reasonable pay, than hundreds of thousands on the live register. While there is little or no wage growth in the Irish economy, moving forward it is imperative that if any pay increases are implemented that they are clearly linked to productivity gains, if competitiveness is to be restored.”
Patricia Callan,
Confederation House,
84-86 Lower Baggot Street,
Dublin 2
Tel: 01 6051500
Email:info@sfa.ie
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