Pay freezes kept to a minimum

Fewer companies are imposing pay freezes on their staff as the recovery takes hold, it has been suggested.

Duncan Brown, director of HR business development at Institute for Employment Studies, revealed how this is a ploy to keep the better workers on board.

"Recovery picking up in some sectors, and fears in others that two years of [pay] freezes and no bonus will mean better people will leave," he explained.

Mr Brown believes there has been a shift in working patters, with more people using time tracking software to keep note of flexible workers.

The proportion of pay freezes has continued to fall in the three months to the end of March 2010, figures from Incomes Data Services show.

Freezes now account for 31 per cent of settlements recorded in this period, down from 34 per cent in the three months to the end of February.

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