Senior executive redundancy soaring

May 20 2008

Up 50 per cent in the last year

The number of senior executives in Scotland being made redundant has soared by 50 per cent during the past 12 months.

A new survey claims 4719 have lost jobs as the tough economic climate begins to bite.

The Chartered Management Institute and CELRE says across the UK redundancy rates are at their highest level for seven years with three per cent of executives getting the chop.

Scotland is seventh in the league of the national redundancy rate with 1.5 per cent of executives losing their jobs compared to one per cent the previous year.

Now in its 35th year, the survey shows that redundancies are highest amongst executives in East Anglia (12.1 per cent) and those least affected are based in Ireland (0.8 per cent).

In terms of industry, manufacturing is the most widely affected sector, with a reported redundancy rate of 7 per cent.

Scotland also had the highest number of executive resignations with 8.5 per cent – that is 25,168 - of the 314,600 managers leaving their posts for other jobs.

A spokesperson for the institute said the redundancy figures could be indicate of the economic climate where companies were having to cut back.

However despite the job cuts the survey also found a 7.4 per cent increase in the average movement in earnings for executives in Scotland.

Junior executives in Scotland have enjoyed higher pay rises than directors with the former getting averages of around 5.5 per cent while directors have received a 2.6 per cent increase.

Mark Crail, managing editor at CELRE, says: “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. 

"Remuneration packages have clearly changed, but they must continue to evolve to meet the needs of the economy and workforce.”