Benefit Cuts Still Planned for 2010

December 29, 2009 (PLANSPONSOR.com) – Even as companies look forward to growth opportunities in the new year, many are still choosing to trim perks and benefits, according to CareerBuilder’s 2010 Job Forecast.

Thirty-seven percent of employers say they will cut perks and benefits in 2010, up from 32% who said they trimmed in 2009. Perks and benefits employers plan to trim in the new year include bonuses, medical coverage, 401(k) matching contributions, and office perks such as coffee, tea, and condiments, according to a press release.

Even as companies continue to watch their spending, they still plan slight increases to salaries in the coming year. Fifty-seven percent of employers report their companies will increase salaries for existing employees in 2010, down from 65% in 2009. Thirty-six percent expect to raise salaries of existing employees by 3% or more, while 11% anticipate increases of 5% or more.

Twenty-nine percent of employers plan to increase salaries on initial offers to new employees, down from 33% in 2009. Nearly one-in-five (18%) employers will raise salaries on initial offers by 3% or more while 7% anticipate increases of 5% or more.

Companies also plan to continue providing employees with greater flexibility. Thirty-five percent of employers say they plan to provide more flexible work arrangements in 2010, compared to 31% last year.

Arrangements employers plan to offer, according to the press release, include:

• Alternate schedules - come in early and leave early or come in later and leave later – 73%;
• Telecommuting options – 41%;
• Compressed workweeks - work the same hours, but in fewer days – 32%;
• Summer hours – 18%;
• Job sharing – 13%; and
• Sabbaticals – 6%.

 

Companies understand the intellectual capital mature workers bring to their organization and 27% say they are open to retaining their workers who are approaching retirement. Sixteen percent say they are likely to rehire retirees from other companies in 2010, and one-in-ten are likely to provide incentives for workers at or approaching retirement age to stay on with the company longer.

At the same time, workers have expressed interest in postponing retirement. Thirty percent of employers report they have received requests from workers approaching retirement age to stay on with their company, up from 22% last year.

CareerBuilder also found that close to four-in-ten employers (37%) plan to put a greater emphasis on social media in 2010 to create a more positive brand for their organization. One-in-five employers plan to add social media responsibilities to a current employee, while 8% plan to hire someone new to focus or partially focus on social media.