Benefits April 10, 2009

Workers not Confident Benefit/Salary Cuts Will be Restored

April 10, 2009 (PLANSPONSOR.com) - The current economic crisis has caused many companies worldwide to make changes in the benefits they offer their employees, such as cutting bonuses, pensions, 401(k) matches or salary increases, and only a minority of Americans believe these cuts will be restored.

Reported by

Rebecca Moore

According to a press release, The Harris Poll, a new nationwide survey of 2,280 U.S. adults surveyed online between March 24 and 26, 2009, by Harris Interactive, found only just over one-third of adults (36%) believe that companies will reinstate annual salary increases that were cut, while 23% say they will not and 41% are not at all sure. Only three in ten survey respondents (30%) say that the 50% match on the first 6% an employee contributes to his/her 401(k) plan will be reinstated, while 23% say they will not be reinstated and just under half (47%) are not at all sure.

In addition, the press release said only 32% of Americans say companies will reinstate pensions if they were cut, while one-quarter (25%) say they will not and 43% are not at all sure. As for bonuses that were cut, one-third (32%) of respondents believe those will be reinstated, while 27% believe they will not and 41% say they are not at all sure.

The survey found certain groups are more likely to believe these cuts will be reinstated than others. For example, regionally, those in the Midwest are more likely to believe salary and benefits cuts will be restored than are people in other areas of the country. Men are also more likely than women to believe companies will reinstate annual salary increases (41% vs. 32%), bonuses (37% vs. 27%), and the 50% match on 401(k) contributions (32% vs. 28%).

Some former workers are considering taking care of their own salaries and benefits. Among those who are currently employed or are looking for work, 9% say they have started or currently run their own business, and 6% say they have begun making plans to start their own business. Thirty-seven percent of those employed or looking for work have considered starting their own business in the past or recently, but have not done so, and about half (48%) have never considered starting their own business.

TABLE 1
EXPECTATIONS OF BENEFIT REINSTATEMENT
class="bwcellparagraphmargin"> "During the recent economic crisis, many companies have made certain cuts tobenefits and salaries. Assuming each of the following were cut, which do youthink employers will reinstate and which will they not reinstate?"


	class="bwcellparagraphmargin">Will Reinstate	class="bwcellparagraphmargin">Will not reinstate	class="bwcellparagraphmargin">Not at all sure
	%	%	%
class="bwcellparagraphmargin">Annual salary increases that match or exceed inflation	36	23	41
Pensions	32	25	43
Bonuses	32	27	41
class="bwcellparagraphmargin">A 50% match on the first 6% an employee contributes to his/her 401(k) plan	30	23	47
class="bwcellparagraphmargin">Note: Percentages may not add up to 100% due to rounding

TABLE 2
EXPECTATIONS OF BENEFIT REINSTATEMENT - By Region and Gender
class="bwcellparagraphmargin"> "During the recent economic crisis, many companies have made certain cuts to benefits andsalaries. Assuming each of the following were cut, which do you think employers willreinstate and which will they not reinstate?"
Percentage saying "Will Reinstate"

	Total	Region				Gender
	Total	East	Midwest	South	West	Male	Female
	%	%	%	%	%	%	%
class="bwcellparagraphmargin">Annual salary increases that match or exceed inflation	36	33	42	36	34	41	32
Pensions	32	34	36	30	30	31	34
Bonuses	32	27	34	32	33	37	27
class="bwcellparagraphmargin">A 50% match on the first 6% an employee contributes to his/her 401(k) plan	30	28	34	30	29	32	28
class="bwcellparagraphmargin">Note: Percentages may not add up to 100% due to rounding

TABLE 3
ENTREPRENEURIAL CONSIDERATION
"Which of the following best describes you in regard to starting your own business?"

	Total	Age
	Total	18-34	35-44	45-54	55+
	%	%	%	%	%
I have started/currently run my own business	9	9	5	9	13
I have begun making plans to start my own business	6	6	7	8	3
class="bwcellparagraphmargin">I have considered starting my own business in the past/recently but have never done so	37	32	45	41	32
I have never considered starting my own business	48	53	42	43	52
class="bwcellparagraphmargin">Note: Percentages may not add up to 100% due to rounding

TABLE 4
EMPLOYMENT STATUS
"What is your employment status? Please select all that apply."

	Total
	%
Currently Employed Full/Part Time/Self Employed (Net)	54
Employed full time	37
Employed part time	13
Self-employed	7
Not employed, but looking for work	10
Not employed and not looking for work	3
Not employed, unable to work due to a disability or illness	4
Retired	19
Student	14
Homemaker	10
Currently Employed Or Looking For Work But Not Self Employed (Net)	57
class="bwcellparagraphmargin">Note: Percentages may not add up to 100% due to rounding