While encouraging news regarding economic recovery might be easing fears, many U.S. employers still intend to trim benefits and restrain pay increases in 2010 in order to preserve the health and growth of their businesses, according to CareerBuilder's 2010 Job Forecast.
“There have been many signs over the past few months that point to the healing of the U.S. economy,” says Matt Ferguson, CEO of CareerBuilder, a recruitment and consulting firm. However, “although 20 percent of employers plan to add headcount in 2010, up from 14 percent [in 2009], they still remain cautious,” he adds.
CareerBuilder surveyed more than 2,700 U.S. hiring managers and HR professionals across industries Nov. 5-23, 2009.
Compensation
Even as companies continue to watch their spending, they plan slight increases to salaries in 2010, the survey found:
• 57 percent of employers report their companies will increase salaries for existing employees in 2010, down from 65 percent in 2009.
• 36 percent expect to raise salaries of existing employees by 3 percent or more.
• Only 11 percent expect increases of 5 percent or more.
In addition, 29 percent of employers plan to increase salaries on initial offers to new employees, down from 33 percent in 2009. Nearly one in five employers (18 percent) will raise salaries on initial offers by 3 percent or more, while 7 percent expect increases of 5 percent or more.
Benefits and Perks
Even as companies look toward growth opportunities for their businesses and more companies plan to unfreeze salaries and restore 401(k) matching contributions, a sizeable minority intend to reduce employee benefits and perks, the survey found:
• 37 percent of employers say they will cut benefits and perks in 2010, up from 32 percent who said they trimmed in 2009.
• Among employers planning cuts, the benefits they plan to trim in 2010 include bonuses, medical coverage, 401(k) matches, and office perks such as coffee, tea and condiments.
Delayed Retirement
One in 10 employers say that in 2010 they are likely to provide incentives for workers at or approaching retirement age to stay on with the company longer. At the same time, workers have expressed interest in postponing retirement. Thirty percent of employers report they have received requests from workers approaching retirement age to stay on with their company, up from 22 percent in 2009.
Flexible Work Arrangements
Companies plan to continue providing employees with greater flexibility in hopes of maintaining a better work/life balance. Thirty-five percent of employers say they plan to provide more flexible work arrangements in 2010, compared to 31 percent in 2009. These arrangements include:
• Alternate schedules—come in early and leave early or come in later and leave later: 73 percent
• Telecommuting options: 41 percent.
• Compressed workweeks—work the same hours but in fewer days: 32 percent.
• Summer hours: 18 percent.
• Job sharing: 13 percent.
• Sabbaticals: 6 percent.
Stephen Miller is an online editor/manager for SHRM.
Related Articles:
More U.S. Employers Granting Pay Raises in 2010, SHRM Online Compensation Discipline, December 2009
Compensation Trends Improving, but Employees Won't Make Up Lost Ground Just Yet, SHRM Online Compensation Discipline, December 2009
Handling Bonus Season: Frustrated Employees, Nervous Managers, SHRM Online Compensation Discipline, December 2009
More Companies Plan to Unfreeze Salaries and Restore 401(k) Matches, SHRM Online Compensation Discipline, November 2009
Quick Link:
SHRM Online Benefits Discipline