A survey asked HR managers to predict their company’s key human-resources indicators. Here’s what they said.
The survey by WatsonWyatt found that 62% of companies that have made hiring freezes and 69% of those that have made salary freezes plan to eliminate freezes within the next 12 months. And 48% that have reduced their employer 401(k)/403(b) matches plan to reinstate them over the next year.
More responses predicting 3-to-5-year trends at their companies:
- Employees working past retirement age?
More: 79%
No change: 18%
Fewer: 2% - Portion of healthcare costs paid by employees:
More: 73%
No change: 24%
Less: 3% - Difficulty retaining critical-skill employees
More: 45%
No change: 45%
Less: 11% - Salary-increase levels
More: 28%
No change: 45%
Decrease: 26% - Staff sizes
Increases: 22%
No change: 26%
Decreases: 52% - Employer contribution to 401(k) and similar plans
Increase: 7%
No change: 76%
Decrease: 17%
More findings:
- 24% of the companies surveyed believe their results have “bottomed out,” approximately double the number of participants who thought so in April.
- 82% that will reverse hiring freezes will do so only partially, and retain them for some locations or positions.
- 78% of those who expect to reverse a salary freeze will do so for all employees, and 78% of those who expect to reverse a salary reduction will restore salaries to original levels.
- 39% will reverse at least some of their travel restrictions in the next 12 months or sooner.
- 55% noticed a decrease in participant contributions to 401(k) or 403(b) plans.
Click here to see the full report.
