Bosses 'feel obliged to give pay rises'
Bosses and managers feel pressured to give pay rises to employees - including those in sales jobs - because of rising costs, including increased energy and food prices, a survey has suggested.
The study was conducted by Croner Reward - part of Wolters Kluwer UK - in June 2008 and found that the basic across-the-board pay rise was between two per cent and four per cent.
However, he cautioned that smaller firms should take care to proceed with caution if they are planning on offering an "above average" pay rise to a staff member, as some private-sector employers may find that they are pinched during times of economic uncertainty.
The Times reported this week that the average rate of pay rises during the three-month period ending June 2008 fell from 3.6 per cent to 3.5 per cent.
Howard Archer, chief UK and European economist at Global Insight, told the newspaper: "This is welcome news for the Bank of England, which believes that it is absolutely critical that wage growth remains contained if current elevated and rising inflation is to prove temporary."
Filed: 01-08-2008
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