More U.S. companies thawing salary freezes
Tuesday, Aug. 2, 2005 | 9:14 a.m.
Salary freezes have all but disappeared for millions of American workers as a stronger economy has prompted companies to lift pay caps and even slightly increase raises.
The good news: The number of employers reporting salary freezes for some or all employees has dwindled to 2 percent this year from a high of 16 percent in 2002, according to a July survey by Mercer Human Resource Consulting. More employers also are supplementing salaries with cash awards, signing bonuses and other incentives.
Employers plan to grant average pay increases in 2005 and 2006 of 3.6 percent, which is a slight uptick from a year ago, when pay increases averaged about 3.5 percent.
The drop in the number of companies with hiring freezes reflects employers' concerns that those with a freeze will lose workers or job candidates to competitors. Also, those with freezes have fallen behind pay scales of other companies in their industry.
But salary freezes are still in place in industries facing challenges, such as autos and airlines, says Ravin Jesuthasan of professional services firm Towers Perrin.
"Most organizations are providing for nominal pay increases," he says. "(Pay increases) are a continued reflection of uncertainty. Companies are hesitant to do anything that locks them in."
The Mercer survey includes responses from nearly 1,350 employers and reflects the pay practices for close to 13 million workers.
archive
- Most Read
- Discussed
- Most E-mailed
- Cada and Moon emerge as Main Event’s final two
- Fight snapshot: Reviewing “24/7 Pacquiao/Cotto,” episode 3
- Motorcyclist dies in Summerlin crash
- Two injured in shooting in central valley
- Buchanan was one of the city’s truly flamboyant characters
- Fight snapshot: Pacquiao is a hit with Jimmy Kimmel, and vice versa
- Google Maps glitch renames Henderson
- Rebels’ win raises a few what-ifs
- Wood: Not the renewable some had in mind
- North Las Vegas man dies in single-car crash
Blogs
Sports: Upon Further Review
Fight snapshot: Arum takes a pot shot during Pacquiao training
Robin Leach's Las Vegas Celebrity Watch
Final Five have two routines each on Dancing With the Stars
The Coin Bucket
Blue Man Group at half price for locals
Elsewhere
Findlay Prep's Bradley fitting in at Texas (2 Comments)
Now and Then
I went to a hockey game and a New Mexico women's soccer match broke out (1 Comment)
Politics: The Early Line
Attention in D.C. focuses on health care proposals (1 Comment)
Elsewhere
Fedor v. Rogers delivers solid ratings on CBS (5 Comments)
Calendar »
- 10 Tue
- 11 Wed
- 12 Thu
- 13 Fri
- 14 Sat
-
Jo Dee Messina at the House of Blues
House of Blues | 7 p.m. to 10 p.m.
-
The Revival Tour at Beauty Bar
Beauty Bar | 9 p.m. to 11:59 p.m.
-
DJ Tina T at Prive
Prive | 10 p.m. to 11:59 p.m.
-
The Automatic Tour at The Square Apple
The Square Apple
The Sun
Locally owned and independent for more than 50 years.
Technorati








