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
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.