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Employers under pressure to agree pay rise demands

David Woods , 07 Aug 2008

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Employers are feeling the heat from staff demanding pay rises to offset rising fuel costs.

More than eight out of 10 employers (83%) claim that inflation is having an impact on how they pay their staff, according to a report by Croner Reward.
 
Organisations blame public-sector pay agreements, trade unions and skills shortages for staff successfully influencing salary negotiations.
 
The survey found most employers (70%) gave pay rises higher or in line with last year, with the basic pay rise across the board averaging between 2% and 4%.
 
Looking to the future, 32% intend to pay bigger rises next year, although a quarter said they would give smaller rises.
 
Employers said the need to retain staff rather than go through a costly recruitment process was a factor in their pay decision with more than half (53%) explaining skill shortages were having an effect on pay awards in their organisation.

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