Dismal pay rises expected in 2009

by 24 Feb 2009

Employees in Asia-Pacific will see the most drastic cuts to their pay rises this year as companies cut back across the board, according to a Hewitt survey re leased recently.

Cash-strapped companies in every region of the world are reeling in their employees’ pay, either through salary freezes or lower-than-typical salary in creases. Workers in Asia-Pacific will be least likely to get the raise they expect, with planned pay raises down 1.7 per cent in 2009 compared with projections made earlier in 2008.

Europe can expect to see average pay increases of 4.2 per cent in 2009, down 0.9 per cent from original projections, while in the US – where original salary in creases for 2009 were already dismal – workers will see the lowest pay raises in three decades, with average increases of 3.0 per cent, down 0.7 per cent from pro jections made earlier in 2008.

However, according to the survey, companies should not always take the quickest and easiest ways to lower over all costs.

“We encourage companies to think through the longer-term implications,” states the report. “While some reduc tions may be unavoidable, organisations need to use this time as an opportunity to assess all of their benefits and rewards programs. Are these programs aligned with their business strategy? Are they competitive?”

COMMENTS

Most Read