Latest in Employment Law>Articles>Pay Negotiations in 2011
Pay Negotiations in 2011
Published on: 06/08/2015
Issues Covered: Dismissal Pay
Article Authors The main content of this article was provided by the following authors.

Introduction

Regular readers will know that Legal-Island organises a local HR Network in the Antrim/Ballymena area. One of our members asked us to conduct a survey of other members in relation to salary increases for 2011 and we thought we'd share the results with you.

It was a very simple survey, anonymous and short. It's hardly a scientific study, as such, but it's interesting to note that:

* 53% of respondents plan to grant a pay rise this year; 47% do not

* Of those planning a pay rise, none has indicated more than inflation and the highest actual amount listed is 2.5%

* None of the respondents plans a pay reduction this year

A number of the respondents left what we thought were useful comments at the end of the survey. You may find the survey results and comments useful if you are considering pay awards for this year.

Meanwhile, the returns from the Antrim/Ballymena HR Network are set out below.

Salary Survey 2011 (as at 25 Feb. 11)

1. What sector does your organisation belong to?
Manufacturing: 5 (33.3%)
Services: 3 (20%)
Utilities: 2 (13.3%)
Healthcare: 1 (6.6%)
Facilities: 1 (6.6%)
Records Management: 1 (6.6%)
Construction: 1 (6.6%)
Other: 1 (6.6%)

2. How many employees does your organisation have?
1 - 49: 1 (6.6%)
50 - 99: 5 (33.3%)
100 - 199: 2 (13.3%)
200 - 299: 1 (6.6%)
300 +: 5 (33.3%)

3. Does your organisation intend to award employees a salary increase in 2011?
Yes: 8 (53.3%)
No: 6 (46.7%)

4. If so, what percentage increase do you intend to award your employees?
Unknown increase: 3 (20%)
Increase linked to March RPI: 2 (13.3%)
2.5% increase: 2 (13.3%)
1.5% increase: 1 (6.6%)

5. When will any planned salary increase come into effect?
Backdated to January: 3 (20%)
March: 1 (6.6%)
April: 2 (13.3%)
June: 2 (13.3%)

6. Does your organisation plan any salary reductions this year?
None of our respondents plans to implement a salary reduction this year.

7. Do you have any other comments that you think might be helpful in relation to salary reviews?
"The company implemented a pay reduction and freeze in 2009, which is expected to continue during 2011."

"Continue to offer staff things like cycle to work scheme, stop smoking help etc that doesn't cost the company but is still seen by staff as investment in them - it is a olive branch as such when you cannot financially reward staff. We now give all staff quarterly updates of new customers, customers we lost to competitors and a brief overview of the company finances to keep everyone focused on breaking even - it showed our staff we had nothing to hide and basically couldn't afford pay rises or bonus payments the last few years."

"All salaries reviews are based on individual performance, there are no automatic increments"

"We have a small group of long service employees whose salaries are much higher than market rate and we are discussing freezing their salary until the market rate catches up."

"There have been no salary increases for three years. The business cannot justify it at present due to the difficult financial position it is in."

"Our employees still receive bonus on achievement of target. Targets have not been increased so there is still potential to earn more than their basic salary"

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Disclaimer The information in this article is provided as part of Legal Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article. This article is correct at 06/08/2015