Salary Freezes & Reductions: Rollbacks on the Horizon

The economic picture, at least from the standpoint of salaries, is beginning to get a little brighter.

In the latest installment of their research on the impact of the recession (this round conducted earlier in October and reflects  the plans/practices of 201 U.S. based companies), Watson Wyatt finds that more than half of those companies who have frozen or reduced salaries are planning reversal/reinstatement in the next 6 months.

The detailed findings salary-wise:

Salary Freezes
Of those companies that have implemented salary freezes...

54% plan to eliminate the freeze in the next 6 months
26% plan to eliminate the freeze in the next 12 months
6% plan to eliminate the freeze in the next 18 months
2% believe it will be more than 18 months before the freeze is eliminated
5% do not expect to reinstate salaries
7% do not know

Salary Reductions
Of those companies that have implemented salary reductions...

57% plan to reverse the salary reduction in the next 6 months
20% plan to reverse the salary reduction in the next 12 months
3% plan to reverse the salary reduction in the next 18 months
7% do not expect to reverse the salary reduction
13% do not know

Click through to the Watson Wyatt report for more information including plans for reversing/reinstating changes to benefit programs, mandatory shutdowns/furloughs, reduced workweeks, training programs and travel restrictions.

Posted by Ann Bares on October 29, 2009 at 02:11 AM | Permalink