Wages still frozen - time for share incentives?
More than half of all UK companies are planning to keep wages on ice for a second successive year, according to a survey carried out by RM2 client Harvey Nash this week, in conjunction with the CBI.
This is one way that companies, particularly those in the private sector, are avoiding having to let people go. Many staff in certain sectors now have had their wages frozen, though others have agreed to pay cuts or even to shorter hours, in order to avoid unemployment.
A recent article, written by RM2's Liz Hunter, highlighted the alternate rewards that employers could offer employees instead of salary or bonus incentives, principally employee share schemes such as the Enterprise Management Incentive (EMI) or Share Incentive Plan (SIP).
The Harvey Nash survey also highlighted how, in the current climate, working from home has grown in popularity and is now offered in at least two-thirds of all UK companies, with a 20 per cent. increase in the last year.
If you would like speak to one of our expert consultants about an employee share plan, please call 020 8949 5522.