Bonuses have been in the news lately for all the wrong reasons, with some commentators accusing employees in the financial sector of taking huge risks to ensure large bonus payments, without considering the long-term impact of their actions.

On a more local scale, however, bonus schemes can have significant advantages for companies - from improving safety and productivity to increasing overall company profitability.

In this issue we look in detail at the team bonus arrangements at manufacturer Fenner Dunlop, which have helped achieve quantifiable improvements in productivity.

Our final summary of 2008 pay awards examines the three months to 31 December 2008. Although pay awards have remained steady at 3.8%, we expect our headline figure to fall considerably from this level as 2009 progresses. In the latest XpertHR outlook video, I talk through some of the key issues currently affecting pay setters, and discuss the likely pattern of pay awards over 2009.

Other top stories in this issue include:

• UK workers have low expectations for 2009 pay awards
• Economic crisis hits finance bonuses

Also, we present detailed coverage of three new pay settlements: the mastic asphalt industry; Sellafield; and the Scottish printing industry.

Sheila Attwood
Editor,
Pay and Benefits Bulletin

Pay reports recently added to the site:

Sellafield: 2% pay rise over 10 months

Mastic asphalt industry: minimum rates increase by 4.75%

Scottish printers: 3.37% increase to minimum rates

Pay review update: 23 January 2009

The latest pay review update table contains pay settlements for Arla Foods, the Foreign and Commonwealth Office, Jaguar, National Australia Bank Group, Thames Water and many more.

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Statistics and forecasts

The datafile contains the most recent inflation, earnings and labour market statistics, pay settlement data and inflation and earnings forecasts. Our panel of City and academic forecasters expect headline inflation to enter negative territory in the second quarter of 2009. It will remain there for the remainder of the year, bottoming out at -2% in the third quarter. Average earnings growth is expected to average 3.3% in 2009.

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From the blog

Launched and run by the editorial team that produces XpertHR and the IRS e-journals, the Employment Intelligence blog is regularly updated with news, comment and links to the latest employment developments. Recent posts include:

• HR pay awards to beat inflation in 2009
• UK interest rates cut to record low of 1.5%
• Woolworths' Channel Islands staff protest over redundancy pay
• Why January 2009 is a crucial time for pay awards

Today's tip: be a part of the UK's largest pay monitoring service

The IRS pay databank is the most comprehensive source of pay settlement data in the UK, and is used to generate the IRS monthly figures on pay rises. You can help make even more of this valuable resource by adding your latest pay settlement to the database.

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