Bosses urged to raise morale at work - graduate jobs

As graduates enter employment facing a market where pay rises lag behind inflation, employers are being urged to create a pleasant working environment in order to maintain morale.

Following the financial crisis, many workers will not only experience pay freezes but salary cuts as well, according to the Public and Commercial Services Union (PCS).

Union spokesman Alex Flynn said despite businesses posting good figures, cost-cutting initiatives often impact most on employees.

"There is a danger across both [the public and private] sectors that the recession can be used as an excuse to drive down pay. The impact this can actually have is harming the recovery," Mr Flynn added.

And he warned the current period of hardship could result in plummeting morale. He is urging businesses to keep spirits buoyed by creating pleasant working conditions and remembering to praise staff where appropriate.

The advice comes as Office for National Statistics data show fewer businesses opened and closed in the UK during 2008 than in 2007.