62 percent of companies who practiced hiring freezes and 69% of those who practiced salary freezes plan to eliminate them within the next 12 months.
The past few years have been more than difficult due to our economic crisis, no denying that fact. Like most consumers, I continue to worry about tomorrow and hold off making purchases until my confidence level improves (hopefully in direct correlation to wallet size). I don’t believe this tactic of holding back is far off the views of most.
Being a natural optimist and a sharing kind of guy, when I hear news of brighter things coming down the road, I want to share the information.
As a result, when I noticed a title “Companies planning to reinstate some programs cut during the economic crisis” pop up recently, I felt compelled to share with you.
Watson Wyatt conducts bimonthly surveys with a goal to placing a finger on the pulse of our economic state. Their survey included responses from 179 employers. In a nutshell they found a majority of U.S. employers plan to reverse some, but not all, of the changes they’ve been making to their pay, benefits, and other HR programs.
Time for cheers? Hold off on the cork-release but for some in the media (those ready to paint a picture not based upon reality but on an agenda of a third kind), this information can be viewed as a sign of economic improvements. In their ears, knowing companies plan to reinstate some programs cut during the economic crisis adds confidence to what nears ahead. Okay, get the glasses out and dusted, here are a sampling of the findings you may find interesting (include the finding at the top of this article):
48% of the companies that reduced their employer 401(k) / 403(b) matches plan to reinstate them in the same timeframe
60% of employers plan to reverse salary reductions (55% within the next year and 5% within 18 months), while 20% of employers will keep them in place, and another 20% are unsure
Not quite ready to pour? As with any coin, there is a flip-side. According to the survey, despite the expectation of improvements, more than 40% believe there will be long-term difficulties in…
* attracting (41%) and retaining (45%) critical-skill employees,
* 79% of companies expect to see an increase in employees working past their desired retirement age, and
* 73% expect an increase in the percentage of health care costs paid by the employee.
Heck, now I’m feeling a bit better about tomorrow. Maybe I should go ahead and make a few purchases and pop open a bottle? After second thought, change often takes more than the 30-day credit bill cycle so I best hold off a month or two…just in case.
Danny Huffman, MA, CEIP, CPRW, CPCC, author, educator, and co-owner of Career Services International/Education Career Services, www.educationcs.com. He may be reached directly at [email protected] or visit his Career Blog at www.educationcs.wordpress.com.
Source: http://www.watsonwyatt.com/news/globalnews2.asp?ID=21645&nm=United%20States
