A fifth of senior management pay scales still below pre-recession levels
DESPITE the upswing in the economy, pay levels still haven’t returned to pre-recession levels for a fifth of senior management in the UK.
According to recent research, more than a third (36%) of senior management in SMEs across the UK were forced to take a pay cut during the economic decline, with over half of that number seeing their salary scaled back by between 5-10%.
These figures come from the latest Close Brothers Business Barometer, a quarterly survey that assesses the opinion of SME owners and senior management from a variety of sectors throughout the UK on a range of financial and economic issues.
CEO of Close Brothers Asset Finance, Mike Randall said: "It's somewhat surprising to find that pay scales are still reduced for so many senior managers across the UK.
"The recession increased stress levels, both at work and at home with many worrying about issues like reduced income and financial security. Now, even though the economy is recovering, it seems that many may still be feeling the negative effects of the downturn.
"While official reports show we are out of recession*, we may still have some way to go to get back to where we were. Our figures suggest that many firms are still deeply concerned about their finances, with over a fifth of those we surveyed claiming that cash flow worries keep them awake at night, while a further 15% said that difficulty accessing appropriate finance prevents them from getting a good night’s sleep."
However, the Close Brothers Business Barometer further found that 38% of UK SMEs believe that they are benefitting from the current trading conditions.
"It's heartening that businesses are beginning to prosper in the current climate. We are working with businesses from all sectors to ensure that they have the information and funding that they need for continued growth, which is vital if we are to achieve a solid and sustained recovery," Mr Randall added.
*Source: The National Institute of Economic and Social Research, May 2014