SME EMPLOYEES ACCEPT PAY CUTS

With small businesses in the UK representing 51 per cent of UK GDP, it is heart- ening to know that almost half of staff working for small companies agree to altered hours and pay freezes to fight recession.

Research conducted by price comparison service, Make it Cheaper, found that, in comparison with unionised public sector workers, those working for small businesses are pre- pared to roll up their sleeves and get on with it [probably because they don’t have union representation, ED].

According to the research, 45 per cent of staff in smal businesses have accepted a pay freeze and agreed to work less (or even more) hours for no extra cash. Why? To help their business fight recession. While 54 per cent of bosses pu the affability of their staff down to acceptance of changing circumstances and dedication to the job, 21 per cent said it was because people were afraid of losing their jobs.

The survey found a great deal of optimism too with 57 per cent of respondents believing that things will stabilise and 18 per cent - almost a fifth - believing that things will be at their brightest in five years. While just 12 per cent of small businesses expect to make redundancies, a staggering 78 per cent claimed not to have lost any staff over the past year.

In fact, energy savings have been on top of most firms agendas with 21 per cent of respondents claiming to have made big savings. There has been a great deal of pro-active and creative cop- ing strategies too with staff at small-to-medium-sized enter- prises (SMEs) suggesting writing to their MP to protest against VAT rises and using online voucher codes for work- related purchases. There have also been moves to increase internet presence and diversifying the business offer to improve profitability.

Making It Cheaper’s managing director, Jonathan Elliot, said that the research results should mean that small busi- nesses are proud of their staff for being so supportive and inventive. Naively, perhaps, he argued that employees should take the opportunity to ‘map out a future pay rise when mile- stones are reached’.