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December 2020  Volume 18, Number 12        
 

This Just In ...

Employers to Cut Back on 2021 Salary Increases

If you're like many employers, you're planning on minimal or no salary increases for your employees in 2021. Experts, however, recommend rewarding employees in key, hard-to-fill positions.

According to the 2020 General Industry Salary Budget Survey conducted by Willis Towers Watson Data Services, one in three American companies is lowering its projected average salary increases. These companies represent a range of industries, including manufacturing, healthcare, financial services and energy.

Earlier this year these employers were planning salary increases of 2.8 percent. Later, after budgets were set, they lowered projected salary increases to 2.6 percent. About 7 percent of the companies are not planning raises in 2021, down from 14 percent this year.

Specific reasons for the more conservative increases range from weaker anticipated revenues during the pandemic to cost-cutting measures.

Experts recommend that rather than allocating the funds across the board, employers should consider focusing on compensating employees in key positions higher than others or paying employees based on performance. For instance, some companies expect to increase "star" employees' pay by an average 4.7 percent.

With the challenges caused by the pandemic and mandated shutdowns, Willis Towers Watson Data Services found that few workers — 62 percent versus 82 percent in 2018 — expect raises.

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In this issue:

Employers to Cut Back on 2021 Salary Increases

Taking the High Cost of Relocation Out of the Equation

What it Takes to Add Inclusion to Your Diversity Efforts

2021 Health Care Costs Could Reach Double Digits

Family Friendly Benefits Now Include Fertility Treatments

 

 


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