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Travel expenses and fringe benefits are casualties of budget cuts

Employers plan to reduce travel, fringe benefits and the opportunity to work over time as budgets are cut in recession.

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."