Survey finds employers reluctant to cut benefits

12-12-2008

Survey finds employers reluctant to cut benefits
Despite the economic downturn employers are trying to be selective about which employee benefits they cut back on, a new survey has revealed.

The poll, conducted by Mercer, found that 81 per cent of human resources and finance professionals expect a decline in their company's business performance in 2009, employee Benefits reported.

"But our survey shows that - at least as a group - most of these companies have refrained from taking severe and broad-based steps," Patricia Milligan, Mercer's chief markets officer said.

It was also discovered that many professionals think that pension contributions, bonus pay outs and salary increases will suffer because of the financial crisis.

More than a third also expect reductions in workforce numbers.

"Cutting back on benefits is like cutting take-home pay," says a spokesperson for ClickAJob.

"It feels like a demotion, which no employee wants – and no employer either, if staff are to be kept motivated.

"But if cutbacks are inevitable, it helps if there can be some kind of gesture to compensate – a privilege not previously available, a discount on company products - anything," he says.

"Companies can change their lifestyle, but most wage-earners with families find it difficult – whatever happens, it's essential not to alienate staff loyalties," he concludes.

Another recent survey, conducted by Cegos, recently found that many companies believe their employee training budgets will remain steady into over the next year, Personnel Today reported.

Related categories: HR / Recruitment.


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