Remember last year when you complained loudly that you only got a 4 percent raise?
Today, with salary freezes and salary reductions, that sounds like an awful lot of money.
Leaner and meaner merit increases are a result of an economy that was sliding even before the horrifying events of Sept. 11–and after that date there weren’t many reports of a higher percentage for wage increases.
A survey after Sept. 11 of 143 U.S. companies by Towers Perrin, a management and human resource consulting firm based in New York, shows that 59 percent of the executives polled said they’re “reducing their merit budgets for all categories of employees to increases of under 3.5 percent, compared with increases of 4 percent or higher in 2001.”
Other areas that will be included in cost-containment measures, according to the report, are the administration of health and welfare plans; staffing and training; and recruiting. But pay is Number 1 on the hit list.
“Looking ahead, there is no question that employers are counting on restraint in compensation to help contain costs,” said Diane Gherson, leader of the Towers Perrin’s employee pay consulting practice.
Translation: Low or no raises this year.
A separate poll by the firm of 350 employers shows that 46 percent have cut merit raises to 3.7 percent on average, and in a few industries, to below 3 percent. Biggest cutbacks are in high tech, entertainment, financial services, metal manufacturing and professional services.
Translation: Low or no raises this year.
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For indications of what’s happening with wages, I always like to take a look at starting salaries for accounting and finance personnel. Knowing the pay prognosis for newly named financial record keepers and advisors gives me additional insight into what other workers can expect when it comes to raises.
The Robert Half and Accountemps 2002 Salary Guide says overall starting salaries are expected to increase by 1.5 percent this year, a very low uptick.
Translation: Low or no increases this year.
Bonuses aren’t very popular, either, at cash-strapped firms. So that leaves perks.
Or does it?
Peter Fleischer is sounding the alert about those extras. Fleischer is partner and director of Ketchum Inside, a change management and employee communication practice that is part of Ketchum Public Relations Inc., headquartered in New York.
“I’ve observed some perks that are among the first to go,” said Fleischer, who is based in Chicago. He lists “lavish” company parties and gift giving; first-class travel; “nice to attend” seminars; and free food, such as lunches and catered meals.
Instead, what many employers are pointing out is that your job is your perk. But that doesn’t have to be the final answer. There still are other perks you can ask for, even in a slow economy.
Here’s my suggested list: A free beeper so you can call your boss day and night and weekends to ask questions about your job; a paid subscription to a retirement magazine; time off to sell your house and car; membership in a miniature golf course; and paid consultations with a bankruptcy lawyer.
And there is one perk your employer might offer after hearing what you want: Time off so you can look for another job.
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Carol Kleiman’s column also appears in Tuesday’s Business and Wednesday’s Working sections. Watch her Career Coach segments Sunday and Tuesday mornings on CLTV. Send e-mail to [email protected].