Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

CoronavirusLatest NewsFurloughPay & benefitsPay settlements

Employers uncertain how long Covid measures will last

by Rob Moss 2 Jul 2020
by Rob Moss 2 Jul 2020 Pubs, bars and restaurants in England can open from Saturday 4 July 2020. Photo: Shutterstock
Pubs, bars and restaurants in England can open from Saturday 4 July 2020. Photo: Shutterstock

As thousands of job cuts were announced in retail and aviation this week, a survey of reward and benefits leaders has shown that businesses are unsure how long they will need to implement measures such as pay cuts, pay freezes and lay-offs to help deal with the coronavirus crisis.

Carried out before the Treasury confirmed plans to introduce flexible furloughing from July, a third (34%) of respondents said their companies had implemented pay cuts or were considering them, 53% had implemented salary freezes or plan to, and 40% said they had, or were considering, deferring salary increases.

Pay cuts and pay freezes

Ryanair pilots accept 20% pay cut to save jobs

How to implement a pay freeze

Letter seeking agreement to reduce an employee’s pay to avoid redundancies

What can an employer do to help employees adapt to a change in their contractual terms?

“Since we first conducted our first survey in this series in March, we’ve seen a continued increase in the percentage of companies implementing reductions in pay, benefits and staff,” said Korn Ferry global benefits and reward leader Don Lowman.

“With the uncertain path this pandemic is taking, it’s critical that organisational leaders monitor the situation regularly and adjust plans to meet the evolving situation, while still keeping an eye to longer-term recovery.”

Almost a third of companies cutting wages said the cuts would last three to four months, while the same proportion said cuts would be for five to six months.

Korn Ferry’s survey of 121 UK companies between 20 and 28 May found more than half (57%) had implemented or were planning temporary furloughs leveraging the Coronavirus Job Retention Scheme. One third said furloughs were expected to last two to three months, but 37% said they did not know how long the furloughs will last.

Almost half (48%) had either implemented or were considering redundancies, affecting 16% of their workforces on average. Other findings included:

  • 22% were offering voluntary unpaid leave
  • 68% were delaying new hires
  • 37% were reducing overtime
  • 15% had implemented or were considering early retirement programmes.

Asked what they will do differently post-crisis, 94% of respondents said employees will continue to work more virtually, 60% said they will be more disciplined about cost management, and 50% said they will be more focused on transparency with employees.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

The majority of organisations (75%) expect changes to their total rewards programmes during the next six months to two years, with 41% expecting “significant changes”.

“It will take time to adapt to a new way of doing business, but company leaders must remember that to attract and continue to engage the best talent, they will not only need to have a competitive rewards and benefit programme, but a programme that is valued by employees and is cost effective,” added Lowman.

Rob Moss

Rob Moss is a business journalist with more than 25 years' experience. He has been editor of Personnel Today since 2010. He joined the publication in 2006 as online editor of the award-winning website. Rob specialises in labour market economics, gender diversity and family-friendly working. He has hosted hundreds of webinar and podcasts. Before writing about HR and employment he ran news and feature desks on publications serving the global optical and eyewear market, the UK electrical industry, and energy markets in Asia and the Middle East.

previous post
HR in a pandemic: How three companies dealt with a surge in demand
next post
BBC culls 450 regional jobs across England

You may also like

NHS 10-year Health Plan sets out vision for...

3 Jul 2025

Living wage pushes up spring pay settlements

2 Jul 2025

Why bosses must set pay independently

2 Jul 2025

Reforming paternity leave could benefit UK by £13bn...

30 Jun 2025

Bank of England says NIC rise is dampening...

27 Jun 2025

Graduate pay versus the living wage: an HR...

25 Jun 2025

Pension Schemes Bill should be ‘hugely beneficial’ for...

5 Jun 2025

Three ways technology can boost wellbeing outcomes

27 May 2025

Public sector workers gain pay rises of up...

22 May 2025

Deloitte scales back salary rises and promotions

22 May 2025

  • Empowering working parents and productivity during the summer holidays SPONSORED | Businesses play a...Read more
  • AI is here. Your workforce should be ready. SPONSORED | From content creation...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+