According to the Daily Telegraph Reward Pay Survey, employers are freezing recruitment, and reducing overtime and working hours, since the latest increase in the minimum wage came into force. Following the introduction of the £4.85 minimum wage, the report has shown that a number of companies are under pressure to change their pay structures, because the earnings gap has narrowed between employees. The survey has also reported that staff are becoming increasingly demoralised by the lack of a decent pay increase, year after year.
Our view:
Difficult call. Some employers are scrooges. Likewise though, some employees are not worth the £4.85 if they are either a) not that good or b) in the early stages of training.