Redundancies at 'seven-year high'

Banks have been hit badly by the credit crisis and have been cutting jobs

More UK bosses are being made redundant than at any time in the past seven years, according to a new report.

The Chartered Management Institute (CMI) said about 3% of UK managers were losing their jobs, more than double the number a year ago.

The redundancy rate is now at its highest since 2001 when it reached 3.7% after the economic fallout from the tech-driven stock market crash.

But those not losing their jobs are seeing pay rises, the study shows.

The CMI and publisher CELRE interviewed 40,027 people in management positions across the nation for their latest survey.

Mark Crail, managing editor at CELRE, said: “This year's study reflects the uncertain economic climate as it shows employers reacting to tougher times, but trying to find ways to retain key personnel too."

Mixed findings

Company bosses in East Anglia have suffered the most from deteriorating economic conditions with redundancies affecting one in 12.

The least affected were based in the Irish Republic where fewer than 1% lost their jobs.

The manufacturing sector suffered the worst, with a redundancy rate of 7%.

SURVEY FACTS 3% of UK managers are being made redundant - double the number than a year ago Pay rises have increased, up 6.7% The average salary for junior managers was £22,352 Resignations were up 6.5% in the year, the second highest level in a decade Source: Chartered Management Institute

But despite signs that the UK economy is slowing, the findings showed that earnings power was on the rise, up by 6.7% over the past year. This beats the 5.3% increase seen in the previous 12 months.

Junior executives were the biggest beneficiaries.

They received an average basic salary of £22,352 with those in the pharmaceutical sector topping the league table with an average wage packet of £27,168.

The food, design and technology sectors were the worst paid for junior management, the report showed.

Retention problems

The CMI also reported the number of company bosses leaving their posts voluntarily was at its second highest level in a decade, up 6.5%.

Scottish employers face the largest retention problem, with a resignation rate of 8.5%, while employees in the South East are the most loyal.

Companies blamed headhunting, bureaucracy, and a failure to provide adequate career opportunities or development programmes for the rise in management turnover.

"Increased levels of pay are clearly not enough to retain employee loyalty despite the uncertain economic climate," said Jo Causon, director of marketing and corporate affairs.