Approximately half of the companies that froze salaries and hiring in the past year now plan to unfreeze them in the next six months, according to the latest update to an ongoing series of surveys by Watson Wyatt on the effect of the economy on HR programs. Nevertheless, employers remain concerned about their ability, both currently and in the long run, to attract and retain critical-skill employees.
Key details
The main findings of the survey include:
* More than half (54 percent) of employers that froze salaries plan to unfreeze them within the next six months, a sharp increase from 33 percent in August and 17 percent in June. Almost half (49 percent) also plan to reverse hiring freezes at least partially in the next six months, compared with 38 percent two months ago.
* An increasing number of employers are planning to reverse reductions to 401(k) match contributions in the next six months – this number has increased to 35 percent, from 24 percent two months ago and only 5 percent in June.
See full Press Release.
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