What’s Happening With Pay

Apr 6, 2009
This article is part of a series called News & Trends.

Companies are increasing pay 2.8% this year, down from a projected 4%, according to the Hay Group.

That’s according to a survey released today, taken in March, of top HR and reward executives in medium- to large-size organizations across a range of industries.

Here’s what else is being done to hold down compensation costs:

What’s being done to reduce salary spend
Organization restructuring to reduce staffing levels22.6%19.2%
Temporary pay freeze23.1%14.5%
Promotion freezes9.7%15%
Reduced benefits (other than retirement)7.1%15.4%
Reduced incentives that are otherwise earned7.3%14.1%
Job sharing6%11.7%
Early retirement packages7.4%9.6%
Increasing co-pays on benefits programs, and scaling back employer-paid coverage5.8%11.1%
Voluntary reduced work week/working hours, with reduced pay3.1%12.4%
Voluntary unpaid leave/unpaid sabbaticals3.9%10.8%
Enforced reduced work week/working hours, with reduced pay3.9%10.3%
Voluntary/negotiated salary cuts3%7.7%
Reduced retirement benefits4.4%6.3%
Temporary salary cuts2.7%7.5%
Enforced unpaid leave/unpaid sabbaticals1.9%6.6%
Compulsory salary cuts2.3%5.6%
This article is part of a series called News & Trends.
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