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By Lin Grensing-Pophal
By the beginning of this year, a quarter of
employers had frozen salaries and a fifth
were thinking about doing so, according
to a survey of 400 employers conducted
by Mercer, a global outsourcing and consulting
firm. Those that were considering giving raises
said their workers shouldn’t expect significant
gains in 2009, with an average salary bump of
just 3.1% planned.
This is a significant change from 2008 when,
for instance, only 5% of respondents said they
would hold salaries firm.
Other companies are suspending 401(k)
matches, making workers shoulder more of the
cost of health insurance, eliminating bonuses
and cutting back or eliminating other benefits.
It’s no surprise that these difficult economic
times are forcing changes that directly affect the
employees of companies large and small. And
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there’s also no doubt that financial worries are
creating anxiety for employers and employees
alike.
According to a recent online poll conducted
by VitalSmarts, a corporate training and organizational
firm based in Provo, Utah, 80% of respondents
said their stress levels have increased
since the start of the recession. And 46% said
that stress has increased the intensity level of
their everyday conversations with friends, family
and co-workers.
This is the environment in which managers
find themselves communicating and, unfortunately,
much of the news they have to share isn’t
particularly good. When it comes to information
about salaries, bonuses and benefits, in particular,
employees are especially sensitive.
What should managers be doing to ensure
that the conversations they’re having are appropriate,
timely and effective?
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