One in four US companies plan salary freeze: survey
About a quarter of businesses in America have frozen workers’ salaries for 2009 in the wake of a pessimistic economic outlook, according to a new survey.
Outsourcing and consulting firm Mercer in a survey released on Monday said 25 per cent of organisations surveyed said they have already decided not to raise their employees’ pay, and another 20 per cent are considering a salary freeze this year.
A year ago, just 5 per cent of companies planned to suspend raises for their staff. Mercer predicted that one in three companies will have frozen wages at 2008 levels by the end of 2009.