More Employers Planning to Reverse Pay, Other Cutbacks

The number of employers planning to reverse salary cuts and freezes and restore matching contributions to 401(k) plans has increased in the past two months, according to the latest update to an ongoing series of surveys by Watson Wyatt, a leading global consulting firm. Nevertheless, the survey also found that many employers remain concerned about retaining their top performers.

The survey found that 33 percent of employers that froze salaries plan to unfreeze them within the next six months, up from 17 percent two months ago. Forty-four percent plan to roll back salary cuts in the next six months, compared with 30 percent two months ago. Additionally, 24 percent of employers plan to reverse reductions to 401(k) match contributions in the next six months, versus 5 percent in June. Watson Wyatt’s latest bimonthly survey was conducted in August 2009 and includes responses from 175 large employers.

“Some employers are seeing the light at the end of tunnel and feeling optimistic about the prospect of improved business results,” said Laura Sejen, global director of strategic rewards consulting at Watson Wyatt. “However, even as some of the program cuts are rolled back, many employees are facing smaller raises, lower bonuses and higher health care costs.”

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About Arthur De Gennaro

My friends call me Art. Welcome to my blog. In this space you’ll find information and comments on the ophthalmology world, the optical industry, the hearing industry and medical practice management. My intent is to provide information you can use to improve your business and your own performance. Please visit often and feel free to join the discussions by leaving comments.

You can learn more about me and my consulting company, Arthur De Gennaro & Associates, LLC by visiting my web site www.adegennaro.com

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August 2009

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