Bonus payments have hit the headlines for all the wrong reasons this year, with alleged excessive payments in the finance sector contributing to the collapse of the banking industry.

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Pay & Benefits Bulletin
   QUICK LINKS ANALYSIS  |  NEWS   |  PAY AWARDS   |  DATAFILE   |  MORE FROM IRS...
  THE EDITOR'S MESSAGE Issue 709  
  PAY RISES AND BONUSES DOWN ON A YEAR EARLIER
Sheila Attwood, Editor

Bonus payments have hit the headlines for all the wrong reasons this year, with alleged excessive payments in the finance sector contributing to the collapse of the banking industry. For many employees, however, payments are modest and are linked to specific targets, but as a result of the recession, payments for many workers will be lower in 2009 than they were in 2008.

Our survey of bonus arrangements reveals how 122 organisations manage their schemes, including the performance metrics used, how they determine the size of the bonus pot and typical payments over the past year.

We also look at the level of pay awards over the first three months of the year, and again find payments below those received in 2008. And, at first glance, April pay awards reveal a significant slide in the value of settlements.

Other top stories in this issue include:

Finally, take a look at our summary of proposals in the 2009 Budget delivered by the Chancellor on 22 April, which we'll cover in detail in the next issue.

XpertHR Sheila Attwood
Editor,
Pay and Benefits Bulletin

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  ANALYSIS

IRS bonuses and incentives survey: employers keep the faith in bonuses

The IRS survey of bonus and incentive pay finds that bonuses remain a key part of the reward offering, but 2009 bonus payments are likely to be constrained by the economic downturn.

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Pay awards: the calm before the April fall

Pay awards remain comfortably above inflation, but look set to dip as details of the April pay round emerge, according to the latest analysis from IRS.

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Video: Managers' pay growth slows to five-year low as recession bites

outlook video

The recession is hitting UK managers' pay packets hard, with executive pay showing its slowest rate of increase for five years. In this video, XpertHR's head of benchmarking data services, Mark Crail, talks to David Shepherd about our latest salary survey research.

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How to implement and manage a discretionary bonus scheme

Pay Intelligence April 2009

XpertHR pay figures: the guide

XpertHR outlook video on pay prospects for 2009

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  NEWS

Flexible benefits show slight decline in 2009

The proportion of UK employers operating a flexible benefits scheme showed a slight decline over the year to January 2009, according to research from Employee Benefits/Towers Perrin.

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Publishing salaries rise by 4.7%

Median basic salaries in the publishing sector increased by 4.7% in the 12 months to 1 July 2008. This is according to a survey of major publishing companies by XpertHR's salary survey unit CELRE and the PPA, the trade association for the publishing industry.

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Housing association pay expected to rise by 2.5% in 2009

Housing association employees can expect to receive a median pay increase of 2.5% in 2009, according to research from Smith & Williamson.

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Migrant workers keep wage pressures and unemployment down

East European migrant workers have helped keep wage pressures down while limiting "the natural rate of unemployment", according to new research.

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Travel staff receive 3.1% increase

Staff in the travel industry were awarded an average pay increase of 3.1% in the year to November 2008, according to research from Croner Reward in association with ABTA (the Travel Association).

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EU: Commission launches campaign to narrow gender pay gap

With the latest figures indicating that women still earn, on average, 17.4% less than men across the EU, the European Commission launched a campaign in March 2009 to help reduce the gap.

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Survey: Benefits and allowances 2008

Survey: Equal pay audits in the private sector

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  PAY AWARDS

Pay reports recently added to the site:

Scottish electrical contracting industry: 4.5% basic increase

Metropolitan Police support staff: 2.65% pay increase

Local government workers: Acas increases 2008 pay award to 2.75%

British Sugar: merit rises ranging from nil to 6.4%

Pay review update: 24 April 2009

The latest pay review update table contains pay settlements at British Aerospace, Matalan, Odeon, Royal London Mutual Insurance Society, Scottish schoolteachers and many more.

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Pay Intelligence April 2009

Latest on pay awards, wage and salary levels

Official figures

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  DATAFILE

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 expects retail prices index (RPI) inflation to fall to -3.2% in the third quarter of 2009. Earnings growth is expected to average between 2.5% and 2.8% throughout 2009.

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Economic indicators

Statutory rates

Latest IRS pay databank figures

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  MORE FROM IRS...

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:

Today’s tip: how to use our RSS feeds

By subscribing to XpertHR feeds, you can view the headlines from our latest articles using a news reader, online feed reader or the live bookmarks facility in your internet browser. You can see new headlines and summaries as soon as they are published - without having to visit the site. A list of links for all the available feeds and more about how to use them is available on the XpertHR Feeds page.

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