24-01-2008
CIPD announces decline in annual salary increases
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The Chartered Institute of Personnel and Development (CIPD) has confirmed that annual salary increases are in decline.
As part of a study of over 600 organisations, within both the private and public sectors, the organisation has concluded that close to 50 per cent of businesses no longer award annual salary increments, even to cover increases in the cost of living.
It was identified that a majority of organisations utilise a combination of factors when determining pay, including individual and team performance levels.
"The decline in the yearly traditional pay rise seems to be spreading throughout employment sectors," said Charles Cotton, an employment conditions and reward adviser for the CIPD.
"Gordon Brown, for example, has announced new plans to abandon annual pay negotiations in favour of a three-yearly settlement for public sector workers."
Moreover, the CIPD also noted that, within organisations, it is increasingly the case that salary budgets are allocated by departmental heads.
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