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 difficult due to our economic crisis, no denying that fact. I continue to worry about tomorrow and hold off making purchases until my confidence level improves. I don’t believe this tactic is far off the views of most. So 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 recent survey includes 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.
This information is viewed as a sign of economic improvements. Knowing that many companies plan to reinstate some programs cut during the economic crisis adds confidence to what resides ahead. To top the survey off, here are some of the findings you may find interesting (and include the finding at the top of this submission):
- 48% that have 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.
Despite the expectation of many 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? 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.