Redeployment in HR increasing

According to the research there has been an ‘internal transfer’ rate across the sector of 8.1 per cent, compared to 4.3 per cent in 2008. The figure is also considerably higher than during the last major recession in 1991, when internal transfers reached 1.6 per cent. With regards to benefits the results indicate an increase in holiday allowances, time off in lieu of work and greater training support – signs employers are attempting to re-motivate staff in the wake of a salary slow-down.

Lord John Eatwell, chief economist at the Chartered Management Institute, says: “It is encouraging to see employers looking for ways to avoid redundancy rather than adding length to the dole queue without a second thought. It shows that business is growing up because today, unlike in 1991, there seems to be more determination to retain skilled staff.”  

Employers in the HR sector are using internal restructuring as an opportunity to transfer core skills across their business. For example, 5.2 percent of function heads have been transferred over the past 12 months, compared to 1.2 percent being made redundant. These difficulties come against a backdrop of the lowest movement in earnings for 5 years, amongst executives in the sector. Take home pay for employees across the HR sector has risen by 4.8 percent in the past 12 months, a drop from 6.6 per cent for the same time, last year. In real terms this means that the average executive in the HR sector is earning a salary of £36,285 per year.  

Mark Crail, managing editor at CELRE, said: “Employers are reacting quickly to the tough economic climate, with pay awards falling and many salary reviews this year resulting in pay freezes. Employers now need to move beyond pounds and pence to look at the other incentives they can offer within the overall remuneration package to motivate staff without breaking the bank.”

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