Companies look to cut pay costs

17 May 2009

18 May 2009 | Martha McKenzie-Minifie

A quarter of employers are considering shortening the working week as they take steps to manage payroll costs in the downturn, according to research from Croner Reward.

Of more than 100 companies surveyed by the pay and benefits specialist, 63 per cent had already cut jobs and 60 per cent had introduced a recruitment freeze.

Overtime had been reduced by 30 per cent of respondents, and 12 per cent had stopped it altogether.

Just 5 per cent of the companies surveyed said they had already shortened the working week but a further 25 per cent were considering taking that step.

Andrew Walker, business director of Croner Reward, said employers had to take a wide range of actions to manage payroll spend in the downturn.

"In the space of 12 months we have moved from a stable and relatively easy to manage range of factors for setting pay levels, into a world where drastic measures are needed to keep on top of the issue."



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