The war for talent rages on despite the recession as more than two thirds (67%) of employers are planning to award some form of pay rise in 2009.

Research from talent management firm Ochre House shows more than a third (34%) of organisations have the same HR budget as last year and 16% have a bigger budget. And while 19% are making redundancies, 14% predict their headcount will increase this year.

Half the organisations surveyed (50%) said they would be awarding pay rises of 2%-3% this year, down from 56% in 2008.

Eight out of 10 organisations are optimistic about the economy in predicting things will improve either in or before 2010.

Chris Herrmannsen, CEO of Ochre House, said: "Although we are definitely well into a serious downturn, there appears to be a general unwillingness to shed staff if it can be avoided."