A large number of firms are resisting pay freezes, according to consultancy Mercer.

The research found that while 47% had already implemented a salary freeze and 15% were considering one, 39% said it was not currently on their company’s agenda.

Chris Johnson, head of Mercer’s human capital business in the UK, says: “Freezing the pay for essential revenue-generating staff can be counter-productive as you may lose them and their revenue to a competitor. There is a strong case for increasing their rewards as long as they perform.”