Thursday, August 18, 2011

Pensions More Important Than Pay for Government Workers

Research released yesterday revealed that only 1/4 of workers had received a pay rise in the past year, which may go some way to explaining why most public sector employees value their existing pension entitlements over any pay awards.

That is according to a new study from recruitment firm Badenoch & Clark, which found that nearly half of public sector workers would suffer a pay cut in order to get their pensions in order.


The survey of 1,000 public sector workers suggests that many are desperate to hang onto their pension packages. The proposed changes to public sector pensions will see 2.5 million nurses, teachers and civil servants face increases of more than £1bn per year.

According to the Belfast Telegraph, the results are a reflection of the insecurity that has been instilled as the government brings in its pension reforms, which public sector workers believe will affect them.

Nicola Linkleter, managing director at Badenoch and Clark, said: “The public sector remains in a state of crisis. With morale low, further cuts looming, and pension contributions set to rise exponentially, managers must continue to ensure that staff understand the future direction and opportunities within the sector.

“Employees will remain loyal to their employer so long as they perceive that their employer is committed to its workforce. This commitment must include clarity on pension reform; lack of transparency will further damage morale, and could lead to further strikes.

“Come October, a year on from Osborne’s initial Comprehensive Spending Review, it will be important to observe how, if at all, the public sector has repositioned itself, internally and externally.”

Read more: http://technorati.com/business/article/pensions-more-important-than-pay-for/#ixzz1XpQLU7Pl

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