Employee motivation: One-quarter of employers want to cut holiday entitlement, says study

Date: 05/07/2011

Employee motivation could be damaged by the news that one in four private sector employers could cut holiday entitlement for their staff.

Research from MetLife found that over three-quarters of companies think they are too generous with holiday pay, and 25 per cent are considering cutting back on paid holidays

But although one-third of employees would be happy to work for longer, they would need increased pay to sacrifice their holidays, the study said.

Dominic Grinstead, managing director of MetLife UK, said: "The ongoing UK economic recovery will rely heavily on SMEs and they need to contain costs. Employees are willing to be flexible to support their employer but will want something in return."

The MetLife study also found that almost 60 per cent of employees believe they won't receive an annual pay increase in the next 12 months.

This contrasts with findings from the Employee Benefits Summit 2011, which found recently that over one-third of delegates will be increasing staff pay in the near future.

Posted by Elizabeth Mewes 

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