News
CAUTION: Employers Salary Increases for 2010 … what is the real truth?
By: Jim Cichanski, President & CEO Flex HR, Inc.
May Newsletter
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Caution is the word when you see "Average Salary Increase" statements quoted in news articles. If the noted article does not talk through how they got to their figures, it may be a misrepresentation!
As one does a survey on salary performance in this recession it is very difficult to really determine the true results. Below are some trends on how salaries varied in the past year …
- 13% of employers cut pay in 2009
- 37% said they are in a recession and not restoring pay in 1st half of 2010
- 15% plan no pay increase in 2010
- 29% of those who cut pay in 2009 plan to restore it in 2010
- 15% of the companies that cut pay do not plan to restore pay
When we see a survey showing, for example, 1,000 companies claim they will give on average a 3.0% increase this year … they may not be saying their employees will gain 3% in income over the past year. And the increase may still reflect a negative increase index from what their employees were earning two years ago. So use caution when referring to an average salary increase because the real amount may not be what it seems. I am seeing a full blended rate of real increases in payroll cost to be 1.5-2%. Many companies have also taken on the benefit increase burden and not give any raises out as well.
Jim Cichanski, President & CEO
Flex HR, Inc.
About Flex HR, Inc.
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In support of a client's initiatives, we uniquely combine the expertise of our executive level HR professionals with state of the art management communications technology, all managed through our Customer Centric Center. Our Customer Centric Center is staffed by HR and Payroll professionals, who have the single goal of providing the most responsive management of your HR administration. The extraordinary combination of expertise, technology, and responsiveness combines to form a powerful asset that may be leveraged to position your company to compete and win.
With overwhelming changes in HR compliance, it is virtually impossible for mid-size companies to maintain necessary expertise in-house. Our platform allows management to have control, without co-employment leasing. Flex HR is a world class HR management system that cares about your employees, and is price affordable. Your company and employees can enjoy the benefits of HR services previously only available to large companies.
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