Employee motivation: Pay has fallen below the cost of living, says CIPD report

Date: 04/08/2011

Pay levels have fallen below the cost of living, research shows, which could cause low employee motivation as staff experience tighter budgets.

According to the Chartered Institute of Personnel and Development's (CIPD) Employee Outlook: focus on pay report, only one-quarter of workers have received a pay rise in the last six months.

Almost 60 per cent have experienced a pay freeze, while six per cent have had a pay cut, which will ultimately lead to a dip in staff morale.

Charles Cotton, CIPD performance and reward adviser, said that higher living costs are placing increasing pressures on workers.

"Inflation figures later this month will highlight growing pricing pressures, which is likely to continue for some time," he said.

Despite the CIPD report saying that retail workers were the lowest paid, last month, Tesco also boosted staff morale by announcing a minimum 2.5 per cent pay rise for its staff.

The supermarket giant said that it will offer a 2.7 per cent pay increase to 233,000 customer assistants, who make up two-thirds of its in-store staff.

Posted by Jo Morgan

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