Pay freezes are 'only part of employment solutions'

Freezing the pay of employees will not solve all sales recruitment problems, according to an industry expert.

Research from the Income Data Services (IDC) found around a third of businesses are currently freezing pay across a range of different industries, however these cuts should be seen as part of a wider business strategy if they are to be successful.

John Grange, a business link advisor, said that pay freezes can cut down costs for businesses fairly quickly but it should not be seen as the solution to sales recruitment on its own.

He added: "Pay freezes can work towards saving jobs but they are not the answer on their own. They have to be seen as part of a jigsaw or a wider strategy plan."

He commented that many businesses have seen a fall in demand for their products during the recession so their costs are starting to exceed their income and they now have to react to this.

Mr Grange's comments follow the research from IDC which said that there is a noticeable division in the UK with pay freezes on one side and increases of just over two per cent on the other.

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By John Oak and Paul Goatman

Filed: 09-10-2009