Travel expenses and fringe benefits are casualties of budget cuts

Research from the CIPD and accountancy firm KPMG shows 74% of private-sector employers have reduced their travel expenses compared with 50% in the voluntary and charity sectors.

Almost half (48%) of employers say individual staff workloads have increased because of the downturn, 46% think staff stress levels have risen but most do not think the recession has had much of an impact on absenteeism, engagement and productivity.

More than a third (38%) have reduced business travel, 55% have cut back on client entertaining and 20% have cut the availability of free refreshments at business meetings.

But the recession has also caused employers to be greener, with 62% making more use of telephone and video-conferencing and 43% increasing the use of public transport for staff.

Tim Payne, head of HR at KPMG, said: "It is no surprise organisations are reining back on non-essential spending and scrutinising their policies carefully. What is important is policy changes are made sensitively and in a way that preserves good will. Firms do not want to alienate staff at a time when employee goodwill is a vital commodity.

"Employees understand companies need to manage their costs - but they still expect leaders to communicate clearly with them when changes are made."

And Gerwyn Davies, public policy adviser at the CIPD, added: "While our greatest sympathy should be reserved for those who are losing their jobs during the recession, the effects on surviving employees should not be overlooked."