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Salary Increases Not Linked to Skills


Salary increases in 2006 will not be linked to skill levels, new research claims.

Pay for senior staff is likely to rise at a similar rate to lower level clerical employees, according to Human Resources firm Hewitt Associates.

The survey quizzed 1,000 private and public sector organisations across 15 European countries to compare the salary expectations of Western and European employees.

UK managers are predicted to receive a 3.9% increase, whilst their clerical co-workers come in closely at 3.7%.

Despite this, performance-related pay irrespective of skill level should reach around 3%, a figure higher than last year’s projections.

According to Hewitt Associates, this increase in merit awards underlines the need of organisations to reward and retain key skills groups.

Head of Talent and Organisational Consulting at Hewitt Associates Jamil Hussain emphasised the importance of training and development to retain top staff.

“The upward movement in salaries remains relatively small, meaning that other elements of reward will become more and more important as part of employers’ strategies for attracting and retaining key talent.”

He added that it was “fundamental” to a company’s market position that employees “find a bond with the organisation through training, career development and recognition rather than seeing employment purely as a pay-based transaction.”


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