Benefits December 30, 2008

Salary Increases, Retiree Retention Cited among HR Plans for '09

December 30, 2008 (PLANSPONSOR.com) - A new survey finds that despite the weak economy, most employers plan to retain employees, including efforts to retain retirees, and increase salaries in 2009.
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CareerBuilder.com’s 2009 Job Forecast reveals that 66% of employers report their companies will increase salaries for existing employees in 2009. According to a press release, 46% expect to raise salaries by 3% or more while 10% anticipate increases of 5% or more.

One third of employers expect to increase salaries on initial offers to new employees, the press release said. One-in-five (21%) say they will raise initial salaries by 3% or more while 7% anticipate increases of 5% or more.

More than half (56%) of hiring managers and human resource professionals surveyed say they expect no staff level changes in 2009, while 14% plan to increase their number of full-time, permanent employees. Sixteen percent plan to decrease staff levels.

CareerBuilder found a quarter of employers report concern over the loss of intellectual capital at their organizations as a large number of baby boomers approach retirement age. Nearly one-in-five (17%) say they are likely to rehire retirees from other companies in 2009, and another 12% are likely to provide incentives for workers at or approaching retirement age to stay on with their organization.

CareerBuilder.com's 2009 Job Forecast finds that as recruitment budgets tighten, more employers are leveraging the Internet as a vehicle for finding potential employees. Nearly one quarter (23%) of employers say their overall hiring budgets will decrease for 2009; however, they plan to increase their recruitment spend on:

  • Online recruitment sites - 19%,
  • Newspaper classifieds - 15%,
  • Career fairs - 12%,
  • Staffing firms and recruiters - 12%, and
  • Social networking sites - 7%.

According to the CareerBuilder press release, 31% of employers say they plan to provide more flexible work arrangements in 2009, including:

  • Alternate schedules - come in early and leave early or come in later and leave later - 70%,
  • Telecommuting options - 48%,
  • Compressed workweeks - work the same hours, but in fewer days - 40%,
  • Summer hours - 19%,
  • Job sharing - 13%, and
  • Sabbaticals - 7%.

The survey was conducted online within the U.S. by Harris Interactive on behalf of CareerBuilder.com among 3,259 hiring managers and human resource professionals (employed full-time; not self-employed; with at least significant involvement in hiring decisions; non government); ages 18 and over between November 12 and December 1, 2008.

More survey results are here .

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