Pay cuts and hiring pause reported in survey

Eight per cent of organisations plan to reduce workforce numbers and 17 per cent have put a freeze on hiring, according to Mercer's 2009 Total Remuneration Survey.

Those keeping their jobs can also expect to have get smaller pay increases.

The median pay rise uncovered by the survey was around 5 per cent for the year to February. It is expected to fall to 2 per cent next year, which is the lowest forecast figure ever reported in the survey's history.