Employers plan to increase salaries but cut back on training budgets

Three quarters of employers are still planning to carry out salary reviews this year - and 40% intend to raise pay between 2% and 3% despite the recession.

But 70% think bonus payments will reduce and 60% will reconsider their bonus schemes given the current climate according to research from reward management consultancy Pay Data.

The report shows training budgets are to be reduced in 60% of organisations surveyed, 70% will reduce costs associated with staff events and 80% will reduce travel and entertainment expenses.

Paul Hajduk, managing director of Pay Data, said: "With inflation predicted to be less than 1% for much of 2009 it is perhaps surprising so many employers are choosing to increase salaries while cutting back on investment in training and development and the 'feel good' factors like staff events and entertainment budgets."