Impact of the Economy on Compensation & Benefits
June 2009
The recent economic turmoil has had negative consequences for some employers and created uncertainty for others. In conjunction with the Firm's NORACS affiliates, WCBC conducted an online e-pulse survey of 253 organizations in the last half of May, 2009 to assess the impact on employers and how these organizations have responded.
Highlights of Findings
- Approximately one-half of the organizations expect lower revenues in 2009, and 50% of private sector companies expect lower profits.
- Four out of ten organizations have experienced a workforce reduction since September, 2008, but the private sector was most affected.
- The last salary increase was typically 3.0% and 40% of the organizations implemented the increase in 2009.
- Thirty percent of the organizations expect to increase salaries by the end of 2009, while 40% expect to implement increases in the first quarter of 2010. The typical salary increase is expected to be 2.5%.
- Most organizations expect to pay bonuses with respect to this year, but the amounts will be lower overall. Approximately one-third of the organizations are reviewing the metrics used to determine the awards under their short-term and long-term incentive plans.
- Although limited overall change is taking place with respect to group benefit plans and paid time off, some employers have implemented (or are considering) increases in contributions to their retirement plans, benefit reductions and changes to retirement plan investment policy, structure or strategy.
- Employers are using a variety of strategies to keep employees motivated and engaged during these uncertain economic times.
Full results of current e-pulse surveys are available to participants only. To be included in future e-pulse surveys, please contact us.