Remember those rosy predictions last summer about how big pay raises would be this year? Forget about it! The global financial crisis has stuck a pin in that cheerful pay balloon.
Three out of four employees will get pay raises this year, but for some, those increases will be the smallest in three decades.
The prospect that employers intend to bump up salaries even a little bit is a “silver lining in this dark economic cloud,” says Ann Ruddy, president of the nonprofit WorldatWork, which is predicting an average increase of 3.1%, down from last year’s average of 3.8%.
It beats getting laid off
Many employees will see far less than the average increase, warns the WorldatWork 2008-09 Salary Budget Survey. Nearly half of 1,169 organizations surveyed said they cut their base salary budgets and predict their employees’ raises will average just 2.3%.
Plus, 10% of the organizations indicated they would freeze pay for