National Management Salary Survey 2011: fewer redundancies and resignations as labour turnover tumbles
New figures from CMI show a decline in labour turnover over the past year, with fewer people resigning,being made redundant and retiring. Data collected from 34,744 individuals in 353 UK organisations reveals a labour turnover rate of 10.5 per cent, down from 12.3 per cent a year ago.
The 2011 National Management Salary Survey, published by CMI with XpertHR, also shows an average salary increase of just 2.2 per cent for the 12 months to February 2011 – the lowest pay rise for more than a decade, down from 2.5 per cent in 2010, 4.9 per cent in 2009 and 5 per cent in 2008.
At 3.9 per cent, the proportion of people resigning has dipped to a five-year low, suggesting that executives are happier in their current roles and more determined to ride out the current economic uncertainty than they were 12 months ago (when resignations stood at 4.7 per cent). The figures show that just 2.2 per cent of executives and professional staff were made redundant over the last 12 months, compared to 3.6 per cent the previous year. During a period of turmoil regarding pensions and changes to the default retirement age legislation, the survey also that just 0.2 per cent retired last year, compared to 0.9 per cent previously.
Across the UK, directors saw salary increases of 3.2 per cent, rising to 7.6 per cent in inner London – much of this accounted for increases in the banking and finance sector.
In real terms, the findings show an average salary of £36,413 for all executives across the UK, rising to £47,021 for those working in inner London and falling to just £23,857 in Wales.
Ruth Spellman, chief executive of CMI, says: “It seems that UK employees are more content to stay in their current jobs. Despite increasing demands on time and pressure to deliver more for less, employees have retained some sense of loyalty to their employers and their efforts are being noticed.
“It’s reassuring that employers have been able to offer modest pay rises, something we hope indicates that the era of pay freezes may be about to thaw. Of course, no one should believe that the only way to retain employee loyalty is by throwing money around. It’s not practical in the current climate and wider evidence exists to show that money is not the main motivator. What is clear, however, is that employers appreciate that they can influence labour turnover and reduce the churn of staff they want to hold on to.”
CMI has launched a salary calculator allowing individuals to compare their annual pay rise against the national average – find out more at www.managers.org.uk/salarycheck).
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