Posted on 10/07/2020 10:21:36 AM PDT by SeekAndFind
The blunt trauma sustained by so many parts of the US economy due to the pandemic has hit many employers.
As a result, one in three companies (35%) now say they have reduced their projections for pay raises next year relative to what they were originally expecting just a few months ago, while half have stuck to their original salary hike targets.
That's according to a new survey of more than 700 US companies from employment advisory firm Willis Towers Watson.
On average, companies now expect to raise salaries for non-executives by an average of 2.6%, down from the 2.8% they initially projected for all employees. For executives, the estimated hike will be 2.5%.
The main reasons cited for the drop: weaker financial results, cost management and budget cuts.
By comparison, average annual pay raises for all employees have been about 3% since the Great Recession.
The survey also found about 10% of companies are not planning to offer salary increases at all.
"For many companies, reducing salary budgets, and in some cases, suspending pay raises, was the most viable option, as they balance remaining competitive with maintaining financial stability," said Catherine Hartmann, the North America Rewards practice leader at Willis Towers Watson.
In terms of bonuses, the good news is two-thirds of employers (66%) are still planning to offer them.
But the survey found companies are most likely to pay bonuses to executives and those in management.
Meanwhile, a quarter of companies (26%) say they're still undecided on whether they'll be able to pay bonuses at all, and nearly one in 10 companies (8%) say they won't do so.
(Excerpt) Read more at msn.com ...
They still have money for that after all the guilt bux they handed out? MUST be Trumpenomics.
Any of those bonuses “jelly of the month club?”
Just having a job is a bonus!................
The gift that keeps on giving the whole year.
This is neither news nor is it unexpected. Companies will always look for reasons NOT to hand out raises and if they have to they will look for excuses for limiting them.
It is always in the best interest of a company to limit their expenses including their biggest expense, salary’s and benefits. If a company believed it could retain their help without giving them a raise they would do so. It is only the marketplace which is forcing them to increase wages.
Yeah. what the article said: 66% of companies still plan to give bonuses next year despite pandemic
What it should have said: 66% of companies still SAY THEY plan to give bonuses next year despite pandemic
Shat else are they going to say?
So far I got a WalMart gift card.
Next year, I would expect about the same.
Our high leader is a nice enough guy but a proud cheapskate but he treats us little people pretty well. I don’t expect a thing.
But I am grateful for anything extra that comes my way.
While getting me car serviced they started handing out Thanksgiving turkeys to the dealership’s employees. Fella asked me if I’d like one. Pretty good!
Many companies are only slightly inhibited by the effects and responses to the virus, with some companies being completely unable to operate. There is a big gulf in effect, depending on what the business is.
The lawn-mowing guy around here is doing even better than usual. The salon is spiraling into bankruptcy.
I work for a fortune 500 manufacturing conglomerate. The overall company is doing pretty well, the division I work for is doing fantastic.
Because the first few months were iffy, we didn’t get any raises this year, but I did get a small bonus.
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