Flexible working and pay freezes now common business practice

23rd June 2009, 9:47am

The recession has dramatically altered the UK workplace landscape, as employers and staff work together to protect businesses and jobs by increasing flexible working and freezing pay and recruitment, new research has revealed.

A new survey of key workplace trends by the Confederation of British Industry (CBI) and recruitment specialist Harvey Nash showed almost two thirds of employers have made or are considering making significant changes to the way they organise their workforce and working patterns.

More flexible working hours, extended shut-downs, extra holiday and cuts in paid overtime have all become more commonplace as the recession has deepened and firms have become determined to cut costs.

John Cridland, CBI Deputy Director-General, said: "This has been a particularly bruising recession, but one of its most positive and striking aspects has been the commitment of many businesses and their staff to work together to try to trim costs and save jobs.

"The UK's flexible labour market has proved a huge asset during these testing times, and flexible working changes have enabled employers and staff to create leeway on working hours.

"While pay and recruitment freezes should disappear as the economy recovers, the spirit of flexibility and the willingness of many staff to engage positively with employers on these issues will hopefully be a more permanent benefit of the UK economy."

Albert Ellis, CEO of Harvey Nash, said: "Without a more proactive approach to training, accommodating and retaining talent, businesses risk missing out on the next generation of skills needed to compete. We have a wealth of knowledge, experience and skills in the UK that must be nurtured and developed, even in troubled times, for the future of the British economy."

To keep employees incentivised, 62% of companies said they have kept their existing bonus structure but, in the wake of the credit crunch, 46% of firms in the banking, finance and insurance sector have reformed their schemes.

Many firms (47%) are not changing their spend on staff training, and 9% are increasing it, but 44% are looking to cut training budgets to save money. Over half of firms (58%) are maintaining their apprenticeship programs, while 10% are expanding them. However apprenticeships can be a significant cost for many firms, and 23% are cutting numbers.

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