Both employers and employees took big hits during the recession. (Unless you’re an AIG exec.) Employers had to make tough decisions on who to keep and if they ever kept people, it was most likely that they had to impose pay cuts or hold out on benefits.
Now with some good signs that the economy is improving, more employers are considering to roll back wages to their former levels. This reversal of pay cuts will be most welcome to workers who have been working harder and longer hours (as reflected by the productivity data in Q2).
The most recent survey revealed that employers willing to reverse the cuts in August rose to 44% compared to 30% in June. Almost 33% of the surveyed companies aim to unfreeze salaries in the next six months compared to 17% in the last survey. A fourth is now considering matching 401k contributions up from just 5%.
“Some employers are seeing the light at the end of tunnel and feeling optimistic,” said Laura Sejen, a director at consulting firm Watson Wyatt.
Source: CNN
