Employers in US plan to resume pay hikes in 2010: survey
Global HR association WorldatWork said more than half of the US companies it surveyed are planning to resume handing out pay hikes in 2010, indicating better days ahead for employees impacted by salary freezes.world Updated: Jan 21, 2010 18:44 IST
Global HR association WorldatWork said more than half of the US companies it surveyed are planning to resume handing out pay hikes in 2010, indicating better days ahead for employees impacted by salary freezes.
WorldatWork which focuses on compensation practices said about 54 per cent of 875 US companies surveyed "plan to resume normal pay activities this year."
Fifty two per cent of US firms had frozen pay for some or all employees, while 13 per cent had cut pay in 2009.
At least 22 per cent of firms that froze pay in 2009 are planning to prolong the freeze going into 2010, it said.
"Employers are taking a 'wait and see' stance when it comes to returning to normal pay practice," WorldatWork compensation practice leader Jim Stoeckmann said.
"There are risks both ways. Moving too fast in restoring salaries and merit budgets leaves employers vulnerable if the recovery fails to materialise. Moving too slowly creates risk of turnover as employees look for a better opportunity with another company," Stoeckmann added.
Even with jobs scarce, there are always opportunities for employees with the right skill set, the WorldatWork survey said.
Of those firms that cut pay, 37 per cent said they remained in a recession and were not yet considering recovery actions. About 29 per cent planned to restore pay in full, while 15 per cent said the pay cuts were permanent.