Hay Group recently published the results of its March '09 "reward in a recession" of the survey highlights key tactical changes strategic and global employers have adopted in response to a deep recession. Some significant observations contained in these results echo what we know true through our daily experiences at work or by the direct impact of the recession in our own family and friends.

Merit Budgets severely Guests will be recalled only a few months ago (though it seems much longer, given the depth and duration of this recession), 2009 projections deserve averaging slightly less than 4%. Fast forward to March when the reported '09 projected general salary increase has been lowered to 2.8%. Complicating again the issue of too few dollars for merit increases significantly, the report notes that the revised budget for the merit of high performance only 3.0%.

This difference Slim .2% among "all employees" and "high performance" remains the conventional wisdom that the dollars that just are not there to reward a significant difference in the two groups based on their performance. According to this report, least 25% of all employers are now budgeting zero wage increases through the Board for 2009.

Executive Impact fee

Executive pay is now a laggard to other employees in terms of increases in merit pay. With executive pay under control, executives can expect a lower total compensation based on a decrease in premiums and falling stock prices. Executives are expected to receive a merit increase even lower 1.5% vs. 2.5% allocated for management and clerical workers. The report identified higher cost cutting changes implemented worldwide for Employers: layoffs, a temporary freeze on pay and promotions, and reduction of benefits. Middle Management becomes the next target Middle management is scheduled to be the next target for the reduction of expenses through the elimination of jobs. While executive pay jobs are more common in process Freezing of other employee groups, organization and job restructuring to reduce staff levels are higher among white collar employees. Because there are more white collar executives, thus increasing the number of restructuring and job cuts lead to more savings of cheap labor for employers. Findings most number

Other key findings (and the corresponding percentage of the surveyed companies take these steps):

* HR programs were reduced or eliminated (27%)

* Payment of overtime has been eliminated (19%)

* Use of contractors has been reduced (30%)

* … Yet few companies are eliminating or decreasing benefits of health care (5%) and savings plans (3%) * A number considerable (38%) are making design changes to its bonus / incentive schemes

* Long term incentive plans have been significantly reduced, an average of 37%

* It is not surprising that employees are more concerned with job security (88%)

* Employers are related mainly with the ability to retain best performance (89%) and maintaining a motivated workforce (91%)

Hopefully, we have reached the bottom of the recession and these statistics are not addressed further south, but only time will tell. For more information, see the executive summary of the March 2009 "reward in a recession" Survey on Hay Group's website. href = "http://www.haygroup.com/ww/Index.aspx"> href = "http://www.haygroup.com/ww/Index.aspx"> http://www.haygroup.com/ww/Index.aspx

About the Author:

Becky is passionate about designing Human Resources programs and compensation plans that build organizations. Her approach? Support individual HR professionals with consulting and continuing education, delivered online at => http://www.ReganHR.com , via information products through the teleseminar format, plus coaching and mentorship programs. She can be reached at Becky@ReganHR.com.

Article Source: ArticlesBase.com – New Hay Group Report Reveals Recession’s Impact on Employers Worldwide

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