Figures released last week show that redundancies amongst the UK’s executive population have hit their highest peak since 2001, with data also revealing concerns for the HR sector. However, reflecting the confused nature of the current economic climate, data from a survey of 40,027 individuals also reveals increases in earning power.

The 2008 National Management Salary Survey, published by the Chartered Management Institute and CELRE, uncovers a redundancy rate of 3 per cent across the UK’s senior management teams. The figure has more than doubled over the past 12 months (from 1.4 per cent) and is at its highest for 7 years, when senior redundancies reached 3.7 per cent in 2001.

The survey shows that executives in East Anglia feared worst with a redundancy rate of 12.1% whilst only 0.8% of Irish executives suffered the same fate. The most widely affected sector is manufacturing with a rate of 7%.

Junior executive staff in East Anglia received the largest pay increases at 7.9% whereas directors in Scotland got a mere 2.6% rise. The survey also shows a wide disparity between average basic salaries across the industries. Junior executives in the pharmaceutical sector have an average salary of £27,168 compared to the lowest paid junior executives in the transport & logistics sector at just £18,419.

Resignation rates also differ greatly throughout the UK. Employers in Scotland have a resignation rate of 8.5% as opposed to the South East of England with only 4.2% handing in their notice.

Why are so many employees prepared to give up their job security? Surely in these days of economic uncertainty executives would think twice before making a career move.

Jo Causon, director of marketing and corporate affairs at the Chartered Management Institute, says: “Increased levels of pay are clearly not enough to retain employee loyalty despite the uncertain economic climate. Given the skills crisis, it is worrying to see so many executives voting with their feet and this must surely send a message to employers that, to retain the best talent, they need to address working environments and long-term career aspirations.”

Have you been experiencing a brain drain problem in your organisation? As an employer what are you doing to encourage your workforce to remain loyal?

As always we welcome your comments and suggestions…