Recent research by the Bank of England showed fewer contracts are stipulating frozen pay in 2010 than they were last year, suggesting that companies may soon be willing to increase wages.
Duncan Brown, director of human resources business development at the Institute for Employment Studies, said some firms will start to increase salaries to improve recruitment and employee loyalty.
'Recovery [is] picking up in some sectors and fears in others that two years of freezes and no bonuses will mean better people will leave,' he commented.
In addition, Mr Brown claimed that some companies will be aiming to offer their staff total reward packages in order to keep them motivated in light of frozen pay and the tough business climate.
A study by Incomes Data Services recently showed that 31 per cent of contracts in the first quarter of the year included pay freezes, falling from 34 per cent in the three months up to February.
Duncan Brown, director of human resources business development at the Institute for Employment Studies, said some firms will start to increase salaries to improve recruitment and employee loyalty.
'Recovery [is] picking up in some sectors and fears in others that two years of freezes and no bonuses will mean better people will leave,' he commented.
In addition, Mr Brown claimed that some companies will be aiming to offer their staff total reward packages in order to keep them motivated in light of frozen pay and the tough business climate.
A study by Incomes Data Services recently showed that 31 per cent of contracts in the first quarter of the year included pay freezes, falling from 34 per cent in the three months up to February.
