The Credit Crunch - Feeling the effects

Low Pay rises of 1 per cent or less, insecure staff and employers wary of recruiting: our exclusive annual salary survey reveals the impact of a slide in full swing. Philippa Ward describes the extensive outcomes here.

The clever times are over. Inside Housing’s exclusive annual salary article reveals that a large number of housing staff have to sort out frozen salaries and that pay rises are shadows of such a former selves. The research, carried out by Hays Social Housing, means senior home officers and home managers have been heard particularly badly hit, with pay increases failing to break the 1 per cent mark. The diminishing has well and actually bitten.

Unsurprisingly, given the halt on new build sites, development officers are also suffering. Their standard pay rise this year is a below-inflation 0.3 per cent. That signals the end of the market's success for development officers, who just two years ago enjoyed average pay rises of 8 per cent.

Amid the gloom there’s comfort for those on the frontline, who are suffering less than such a managers. Housing assistants still got an average 3 per cent pay step up now year, while anticipate workers for supported house got a weighty 5.3 per cent.

‘The downturn has created opportunities for a range of specialists, such as homelessness and real estate advice officers. [Among these types of groups] salaries should keep solid as pressure for these services [builds up].’ says Richard Gelder, director at Hays Social Housing.

Attractive offers

In addition, claims Matt Lewis of Hays, during a downturn homeowners are usually cautious about moving, exacerbating any skills shortages.

Certainly, employers say they suffer had crisis recruiting staff in the last 12 months, mainly because of a shortage of good applicants. But something like a third admit the current salary levels have made it difficult to attract the right people.

Some employers are reacting to the economic outlook by scrapping more expensive employee positives such as training - support for learning on the job has fallen according to 80 to 65 per cent from the time of last year. Tom Nicholls, group director of human resources at London and Quadrant, warns against this type of cost-cutting. ‘The message that gives out throughout continuing investment is a big one, perhaps bigger than [paying] bonuses. It’s about long lasting commitment and planning for the future.’

Tony Williams, board organisation development director at Orbit Housing Group, agrees that it is drastic for employers to continue to invest in such a people for the duration of a recession.

‘It is about the way you are looked after. Yes, it is pay but it is in addition how you are managed, treated and developed,’ he says. ‘There’s a real danger of overlooking this in an economic slide - human resources plans to be standing up at this point.’

It is positively a time to reassure staff, amid merely 17 per cent feeling outstandingly secure in their professions according to our study. More than half of staff feel quite or very insecure and 83 per cent expect to move jobs within the next three years. That may be connected to the increased values of nervousness the people are going through - just a third think that properties have a smart work-life balance.

Finally, housing real estate agents say the challenges they are facing have changed dramatically. The credit crunch has leapt to the front of the pack as the peak apprehension of the next five years: 40 per cent of employees say it tops such a list, compared with 13 per cent last year. A quarter be certain that homelessness will prove a good number of pressing, amid healthy homes and mergers dropping back in comparison.

Employers also put the credit crunch top, but rate mergers second, in on a quarter stating that properties will be the most important issue over the next three years.