One of the British government’s first actions in power was to agree to 5% salary reductions.
This could very easily be a sign of things to come, particularly in the UK’s public sector, where I suspect the cuts won’t come quite so easily.
My only experience of this comes from my spell in Russia after the 1999 crisis there. But for those in the UK, with a relevant subscription, there’s some useful advice on the XpertHR site, starting with this introduction:
“Over the past 12 to 18 months, the majority of businesses have had to consider making redundancies. But to avoid the expense of redundancy and in an attempt to retain talented staff, many employers have looked at implementing alternative cost-saving measures.
Historically, tribunals have seen implementing a reduction in salary as a draconian measure. But, from my experience over the past couple of years, they have become receptive to this measure if it is carried out as a genuine means to avoiding redundancy.”
Something I think we’ll be talking about quite extensively at Osney Media’s Reward conference next week (I’ll be chairing part of day 1 and delivering the follow-up workshop).
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