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:
| Using | Considering | |
| Organization restructuring to reduce staffing levels | 22.6% | 19.2% |
| Temporary pay freeze | 23.1% | 14.5% |
| Promotion freezes | 9.7% | 15% |
| Reduced benefits (other than retirement) | 7.1% | 15.4% |
| Reduced incentives that are otherwise earned | 7.3% | 14.1% |
| Job sharing | 6% | 11.7% |
| Early retirement packages | 7.4% | 9.6% |
| Increasing co-pays on benefits programs, and scaling back employer-paid coverage | 5.8% | 11.1% |
| Voluntary reduced work week/working hours, with reduced pay | 3.1% | 12.4% |
| Voluntary unpaid leave/unpaid sabbaticals | 3.9% | 10.8% |
| Enforced reduced work week/working hours, with reduced pay | 3.9% | 10.3% |
| Other | 3.7% | 8.6% |
| Voluntary/negotiated salary cuts | 3% | 7.7% |
| Reduced retirement benefits | 4.4% | 6.3% |
| Temporary salary cuts | 2.7% | 7.5% |
| Enforced unpaid leave/unpaid sabbaticals | 1.9% | 6.6% |
| Compulsory salary cuts | 2.3% | 5.6% |