70% of firms to cut or freeze pay

ALMOST 70% of companies are set to reduce or at least freeze staff pay rates next year, according to research from employers’ representative, IBEC.

“Despite the fact that a quarter of companies plan to hire new staff in the next three months, employers are still not in a position to award pay increases. Companies remain focused on regaining competitiveness and getting pay costs back into line with our trading partners,” commented IBEC director, Brendan McGinty on the back of the publication of his organisation’s latest pay survey.

Of the 400+ companies surveyed in the latest edition of the survey, 69% said their pay rates would either remain unchanged, or would be lowered in 2012. IBEC added, even though many companies aim to take on more staff in the upcoming months, pay expectations still need to reflect “current economic realities”.