Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • 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
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • 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
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Economics, government & businessLatest NewsBusiness performanceRecruitment & retentionPay settlements

Retention risked by public sector pay freeze

by Helen Gilbert 8 Oct 2009
by Helen Gilbert 8 Oct 2009

Public sector employers could face retention woes when the government introduces a pay freeze for the most senior civil servants, senior NHS managers, GPs, chief executives of quangos and judges next year.

The warning from Duncan Brown, director of reward services at the Institute of Employment Studies, follows chancellor Alistair Darling’s zero pay increase proposal, aimed at reducing government spend.

On the same day shadow chancellor George Osborne said the Conservatives would introduce a public sector pay freeze in 2011 if they come to power at the next election.

Brown said Darling’s proposal came as no surprise, but cautioned that the public sector could suffer as workers jump ship to the private sector.

He told Personnel Today that the public sector had benefitted from the current state of the economy, by enjoying pay rises while much of the private sector had frozen pay.

He said: “The public sector has recruited quite successfully from the private sector.

“Next year we are likely to see pay increases pick up in the private sector, although employment is not supposed to pick up until later next year, hiring is predicted to start.

“There’s a real issue about competitiveness of pay, if the private sector picks up quicker and public pay is frozen – particularly in specialist jobs where there’s a gap.”

Brown advised HR departments to look at their total rewards offer to ensure employees understand and appreciate their reward package, and urged them to issue total rewards statements, which are not as common in the private sector as the public sector.

“There should be good communication of reward, face-to-face with the line manager. And emphasise the non-financial benefits; the public sector is good on flexible working.”

Gill Hibberd, president of the Public Sector People Managers Association warned that the Conservative pay freeze announcement could put pressure on pay rounds for 2010.

“If people are assuming that there will be a change in government, this could put tremendous pressure on pay negotiations for 2010 because they [unions] are anticipating a pay freeze.

“It’s now we need to have the pay constraint because of the economy. Who knows what it will be like 2011. A pay freeze in today’s environment is a sensible way of protecting jobs in the longer term.”






Public sector pay: three-year deals








 

XpertHR holds a comprehensive list of which public sector staff are in long-term pay deals.

Teachers in England and Wales: from 1 September 2008, final stage 2.3% from 1 September 2010

NHS workers: from 1 April 2008, final stage 2.25% from 1 April 2010

Police officers: from 1 September 2008, final stage 2.55% from 1 September 2010

Senior Civil Service: from 1 April 2008, originally worth 7% of paybill over three-year period, but the government reduced this.



Avatar
Helen Gilbert

previous post
Cut public sector HR staff says MoD HR chief
next post
Jobcentre Plus to face private competition under Conservatives

You may also like

Employment law changes for 2022 and beyond: update...

1 Jul 2022

BT workers vote for strike action over pay

1 Jul 2022

Chief financial officers now more involved in HR

1 Jul 2022

Top 10 HR questions June 2022: Former employees

1 Jul 2022

Pay all care workers a £10.50 hourly minimum...

30 Jun 2022

Royal Mail managers vote to strike over restructure

30 Jun 2022

Give wellbeing a board seat: Prof Sir Cary...

30 Jun 2022

One in five workplaces lack LGBT support policies

30 Jun 2022

Christian doctor loses transgender pronoun case, but beliefs...

29 Jun 2022

New chief workforce officer at NHS England

29 Jun 2022
  • NSPCC revamps its learning strategy with child wellbeing at its heart PROMOTED | The NSPCC’s mission is to prevent abuse and neglect...Read more
  • Diversity versus inclusion: Why the difference matters PROMOTED | It’s possible for an environment to be diverse, but not inclusive...Read more
  • Five steps for organisations across the globe to become more skills-driven PROMOTED | The shift in the world of work has been felt across the globe...Read more
  • The future of workforce development PROMOTED | Northumbria University and partners share insight...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 2022

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2022 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • 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
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+