Australian employees to be hit by GFC

by 14 Apr 2009

Australian employees will no longer be shield ed from the global financial crisis as nation al salary budgets are predicted to fall fur ther during 2009.

Almost 20 per cent of companies are in tending to reduce their spend on fixed salary and short-term incentive budgets over the next 12 months. This is on top of a rapid decline from 5 per cent to 4 per cent in national salary budgets over the past six months, according to Mercer’s 2009 Market Issues Survey.

“Australian companies have quickly shift ed gears in response to the rapidly deterio rating global economy,” said David Abusah of Mercer.

The research also found that HR invest ment priorities have flipped in the last six months. Base pay, short-term incentives and learning and development programs which were in the top five areas for increased HR investment six months ago are now the top three areas for reduced HR investment.


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