Executive lay-offs 'at 7-year high'

More company executives are being made redundant than at any time in the past seven years, according to research published today…

More company executives are being made redundant than at any time in the past seven years, according to research published today.

Around 3 per cent of senior management teams are losing their jobs, twice the rate of a year ago, the study of 40,000 executives by the Chartered Management Institute found.

Redundancies are highest in East Anglia, where one in eight managers have been made redundant, and lowest in Northern Ireland, where less than 1 per cent are affected.

Manufacturing is the worst-hit industry, with a redundancy rate of 7 per cent, said the report.

Executives not losing their jobs are enjoying higher rates of pay, up by 6.7 per cent over the past year, an increase of 0.4 per cent over the previous 12 months.

Junior executives have seen their pay increase by 5.4 per cent, giving them a basic salary of over £22,300.

Resignations reached 6.5 per cent in the past year, the second highest for a decade, with most being headhunted or blaming competition from other organisations.

Jo Causon, director of marketing and corporate affairs at the Chartered Management Institute, said: "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."