We have summarised two sets of research published earlier in April that have suggested that COVID-19 is going to have a huge impact on their pay and reward plans. We are also running a very short survey to ask our contacts about this and it will be great if you can take part using the link below...
According to XpertHR, only one-sixth do not think that the pandemic will affect their pay review or bonus payments. Half expect some impact, with the remainder unsure (they were surveyed at the start of April). Some organisations were considering pay freezes and bonuses may be reduced or deferred in many cases.
Incomes Data Research have found that half of companies will honour pay awards, but 27% have decided to defer them until later in the year. However, 22% have decided to freeze pay in 2020. The pattern appears to be spread across all sectors.
As the National Minimum Wage rate was increased in April, care will need to be taken to ensure that your wider pay structure differentials are maintained - especially if rises have been restricted to affected employees. It will be worth considering the impact that this will have on your pay structures, particularly for roles paid just above the minimum wage level.
News and views from the EBRS team
Updates and opinions on the world of employee pay and reward from the team at EBRS. We've archived articles from before 2016.