Employee motivation continues to struggle as fewer staff expect pay rise

Date: 20/12/2010

Less staff expect a pay rise next year, which could lead to drops in employee motivation, according to research.

The Chartered Institute of Personnel and Development (CIPD) carried out a survey of 3,000 employees, which revealed that fewer staff expect their pay to rise next year – only 58 per cent compared to last year's number of 67 per cent.

Public sector staff have the lowest expectations, so bosses could see a lack of employee motivation, as 49 per cent predict a pay freeze next year and 44 per cent expect a pay rise.

In comparison, 29 per cent of private sector workers expect a pay freeze and 61 per cent expect a pay increase.

Charles Cotton, performance and reward adviser at the CIPD, said: "While the proportion of employees who have seen their pay frozen has increased in 2010, we predict that this will fall next year as more private sector employees enjoy a pay rise and fewer of them receive a pay freeze on the back of the improving economy.

"It may be that workers are being very cautious in their pay outlook for 2011 after being disappointed by what happened to them in 2010."

These statistics follow expectations that employee morale in public sectors will be low as staff prepare themselves for 100,000 job cuts by the New Year.

Posted by Elizabeth Mewes 

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