Communication is critical in sensitive pay talks

Bosses could face revolt if they don’t keep their workforce onside, an expert has warned.

Mike Wakeling, a partner in the employment department of Stratford-upon-Avon-based Lodders Solicitors, said heavily constrained and frozen pay was trying people’s patience.

And he warned that their mood was not helped by continued examples of enormous salaries and bonuses still prevalent in the City.

Mr Wakeling said: “In these difficult times companies have been under pressure and there have been many examples of workers having to accept pay cuts and pay freezes.

“Some have not seen a rise for three to four years – meanwhile inflation is eating away, seeing them worse off every day.

“So it is not surprising that viewing the ‘scandals’ over executive pay and just how much top footballers receive a week – a few earning £200,000 and above, ten years’ pay for lots of parks players – that the frustrations build up.”

Mr Wakeling said businesses consequently needed to explain their position clearly and tactfully.

He went on: “Good communication is critical if the workforce is to remain loyal and motivated.

“Unemployment is continuing to rise and jobs are at a premium – workers understand that.

“But if they are to support the business through lean times then they need to be told the facts and so able to understand the economic challenges facing the company. By and large workers want to be part of a successful operation; they also want to be rewarded fairly.

“Being as open and transparent as possible will go a long way towards easing the sensitivities involved and retaining a committed workforce.”

Mr Wakeling cautioned companies to deal sympathetically with their staff on an ongoing basis.

“While the tough times remain try where possible to offer financial incentives for extra orders brought in and the implementation of improved working practices.

“And when things pick up, which will eventually happen, it is important that businesses reward their people commensurately.”

He added: “The alternative is to risk industrial strife and the loss of skilled workers. Communication, not confrontation, has to be the message.”