Unfair wage restraint could cost UK firms 80K

While wage restraint is necessary in the recession, business leaders which do not talk to their staff could find themselves paying out over the odds.

A simple, transparent communications strategy could help companies save between 10,000 and 80,000.

Thatís according to Jane Farrell, a leading expert on equality and diversity in the workplace.

ìWhile it is necessary to control wages in the current economic climate it is critical to communicate why and for how long,î says Farrell, CEO of www.EqualityWorks.co.uk, the UKís leading provider of equality and diversity consultancy, training and advice. Their clients include the BBC, Barnardoís and Transport for London.

ìEnsuring that the criteria for the groups affected does not adversely impact on women, ethnic minorities or disabled staff is imperative. Companies which get this wrong could face huge recruitment costs if employees feel they are being mistreated.î

And as the last few weeks have proven, many senior leaders are quick to freeze wages and reduce working hours for staff at the bottom, says Farrell.

ìIf people can see the senior management team also agreeing to forgo bonuses or salary rises it would help staff to feel that there was a degree of fairness. This is a real opportunity for senior managers to demonstrate leadership here.î