Reversing salary cuts: Sign of the recovery?
A good sign for an economic recovery in near future: More firms are planning to halt or reverse the cost-cutting strategies they used to survive the recession.
A recent Watson Wyatt survey found that an increasing number of companies are planning to end salary cuts and freezes, and reinstating the company’s 401(k) match.
The changes are geared toward ensuring top-performing employees don’t jump ship once the economy rebounds — a fear many employers have, according to the study.
The chart below illustrates how many companies are planning on reversing salary cuts and freezes, and restoring the 401(k) match now — as opposed to two months ago.
There is one area, however, where most companies plan on staying firm: sharing the healthcare burden with employees.
The study found that 66% of employers that boosted employees’ share of healthcare premiums don’t plan on reversing their decision, and 40% of employers plan on cost shifting through future premium increases.
- Share on
Free Training & Resources
Webinars
Provided by SkyStem
Further Reading
There’s no need to panic if you or one of your staffers discover they’ve made mistakes with your company’s 401(k) plan.&nb...
Although Congress isn’t famous for cooperation, there was enough bipartisan support for the Secure 2.0 Act of 2022 (pages 817-946 of ...
As employers finalize their 2026 budgets, rising healthcare costs are forcing tougher decisions in financial planning and employee benefits...
Believe it or not, more than 80% of workers like their employers’ Paid Time Off (PTO) packages. But that doesn’t stop a surpris...
Reassessing HSA employer contributions can increase participation while capturing meaningful payroll tax savings. Employer contributions to...
There’s a Great Re-evaluation going on among your peers when it comes to health and well-being program benefits. That’s t...
